A $500,000 bond issue sold for $490,000. Therefore, the bonds:

Are you having trouble answering the question “A $500,000 bond issue sold for $490,000. Therefore, the bonds:”? If that’s the case, you don’t need to worry anymore. Azanswer has brought you the correct answer to your question.

A $500,000 bond issue sold for $490,000. Therefore, the bonds:

A) Sold at a discount because the stated interest rate was higher than the market rate.

B) Sold for the $500,000 face amount less $10,000 of accrued interest.

C) Sold at a premium because the stated interest rate was higher than the market rate.

D) Sold at a discount because the market interest rate was higher than the stated rate.

Answer: D

We hope you have got the correct answer to your question “A $500,000 bond issue sold for $490,000. Therefore, the bonds:”, which was part of Accounting MCQs & Answers. Thanks for choosing us.

Leave a Reply 0

Your email address will not be published. Required fields are marked *