If the Market Rate of Interest Is 6%,a $10,000,10-Year Bond

Multiple Choice

If the market rate of interest is 6%,a $10,000,10-year bond with a stated annual interest rate of 8% would issue at an amount:

A) less than face value (discount) .
B) equal to the face value (par) .
C) greater than face value (premium) .
D) that cannot be determined.