On January$1,$

$20242024,$

Nurses

Credit Union

$($NCU$)$

issued

$8\%8\%,$

$2020-$year

bonds payable with face value of

$ $600,000$$$600,000.$

The bonds pay interest on June $30$ and December $31.$

Read the

requirements

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$.$

Question content area bottom

Part $1$

Requirement $1.$ If the market interest rate is

$7\%7\%$

when

NCU

issues its$$ bonds, will the bonds be priced at face$$ value, at a$$ premium, or at a$$ discount? Explain.

The

$8\%8\%$

bonds issued when the market interest rate is

$7\%7\%$

will be priced at

$$

$$

a discount

a premium

face value

$.$

They are

$$

$$

attractive

unattractive

in this$$ market, so investors will pay

$$

$$

face value

less than face value

more than face value

to acquire them.