Question: 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 4%

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 4% 9% 11% 9%
Market Rate of Return 6% 9% 14% 7%

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