Given the information below, which bond(s) will be issued at a discount?

	Bond 1			Bond 2			Bond 3			Bond 4
Stated Rate of Return	5	%		9	%		12	%		13	%
Market Rate of Return	8	%		9	%		14	%		10	%

Multiple Choice

• Bond 1.

• Bond 3.

• Bond 4.

• Bonds 1 and 3.

Given the information below, which bond(s) will be issued at a discount? Stated Rate of Return Market Rate of Return Bond 1 5% 8% Bond 2 9% 9% Bond 3 12% 14% Bond 4 13% 10% Multiple Choice Bond 1. Bond 3. O Bond 4. O Bonds 1 and 3