AB Company Issued a $100,000, 10%, Bond at $99

Multiple Choice

AB Company issued a $100,000, 10%, bond at $99.Therefore, the bond:

A) sold at a premium because the $1,000 accrued interest is added to the $100,000 face amount.
B) was sold at a premium because the stated interest rate was higher than the yield rate.
C) sold at a discount because the stated interest rate was lower than the market interest rate.
D) was sold for $100,000 less $1,000 of accrued interest.