Discount on Bonds Video Lessons

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Problem: Mega Corp. sold $25,000,000 of its 9% bonds at par on January 1, 2012. On December 31, 2012, the bonds were trading on the bond exchange at 98.5. Since the issue date, the market rate of interest on similar bonds has: A. Increased B. Decreased C. Stayed the same D. None of the above

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Mega Corp. sold $25,000,000 of its 9% bonds at par on January 1, 2012. On December 31, 2012, the bonds were trading on the bond exchange at 98.5. Since the issue date, the market rate of interest on similar bonds has:

A. Increased

B. Decreased

C. Stayed the same

D. None of the above

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