A Corporate Bond with a Face Value of $1,000 Is

Multiple Choice

A corporate bond with a face value of $1,000 is issued at 107. This means that the bond actually sold for:

A) $107 dollars, and the stated interest rate was higher than the market interest rate.
B) $1,070 dollars, and the stated interest rate was higher than the market interest rate.
C) $107 dollars, and the stated interest rate was lower than the market interest rate.
D) $1,070 dollars, and the stated interest rate was lower than the market interest rate.