State Street Beverage Company issues $802,000 of 11%, 10 -year bonds on March 31, 2017. The...

 

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State Street Beverage Company issues $802,000 of 11%, 10 -year bonds on March 31, 2017. The bonds pay interest on March 31 and September 30. Which of the following statements is true? O A. If the market rate of interest is 12%, the bonds will issue above par. O B. If the market rate of interest is 12%, the bonds will issue at a premium. C. If the market rate of interest is 12%, the bonds will issue at par. O D. If the market rate of interest is 12%, the bonds will issue at a discount. State Street Beverage Company issues $802,000 of 11%, 10 -year bonds on March 31, 2017. The bonds pay interest on March 31 and September 30. Which of the following statements is true? O A. If the market rate of interest is 12%, the bonds will issue above par. O B. If the market rate of interest is 12%, the bonds will issue at a premium. C. If the market rate of interest is 12%, the bonds will issue at par. O D. If the market rate of interest is 12%, the bonds will issue at a discount.

Answer rating: 100% (QA)

answer Option D is correct D If the market rate of interest is 12 the bonds wi... View the full answer