Concept

# Problem: On July 1, 2012, Wilson Co. issued $300,000, five-year, 9% bonds at 103. The reason that Wilson issued the bonds at a premium was: A. the stated rate of interest was higher then the rate being paid on investments of comparable risk. B. the stated rate of interest was the same as the rate being paid on investments of comparable risk. C. the stated rate of interest was lower then the rate being paid on investments of comparable risk. D. None of the above. ###### FREE Expert Solution ###### Problem Details On July 1, 2012, Wilson Co. issued$300,000, five-year, 9% bonds at 103. The reason that Wilson issued the bonds at a premium was:

A. the stated rate of interest was higher then the rate being paid on investments of comparable risk.

B. the stated rate of interest was the same as the rate being paid on investments of comparable risk.

C. the stated rate of interest was lower then the rate being paid on investments of comparable risk.

D. None of the above.