The issuance of bonds-interest and yield


Problem: On July 15, 2000, Green Valley Cooperative issued $400,000 of bonds with a stated interest rate of 8%, payable annually. These bonds mature 20 years after issuance and yielded 6% on the sale. Therefore, the bonds were issued at:

A. a premium

B. a discount

C. total future value

D. face value

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Finance Basics: The issuance of bonds-interest and yield
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