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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. 

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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. 

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