Question: On January 1 , 2 0 2 4 , Educators Credit Union ( ECU ) issued 6 % , 2 0 - year bonds payable

On January 1,2024, Educators Credit Union (ECU) issued 6%,20-year bonds payable with face value of $800,000. The bonds pay interest on June 30 and December 31.
Read the requirements.
Requirement 1. If the market interest rate is 5% when ECU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.
The 6% bonds issued when the market interest rate is 5% will be priced at They are in this market, so investors will pay to acquire them.
On January 1 , 2 0 2 4 , Educators Credit Union (

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