Question: On July 3 1 , 2 0 2 4 , Pharoah Inc. issued $ 4 7 5 , 0 0 0 of 5 - year,

On July 31,2024, Pharoah Inc. issued $475,000 of 5-year, 4% bonds at 101. Interest is payable semi-annually on July 31 and January
31. Pharoah's fiscal year end is January 31.
(a)
Is the market rate of interest higher or lower than 4%?
The market rate of interest is

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