18. Given the information below, which bond(s) will be issued at a discount? Bond 1 Bond 2 Bond 3 Bond 4 Stated Rate of Return 5% 7% 12% 10% Market Rate of Return 7% 8% 12% 9% 19. % BD Company issues 6%, 10-year bonds with a face amount of $1,000,000 on January 1, 20A for $1,000,000. Interest is paid semiannually on June 30 and December 31. What was the market interest rate for the bond issuance?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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What the answer for question 18 and 19?
18. Given the information below, which bond(s) will be
issued at a discount?
Bond 1 Bond 2 Bond 3 Bond 4
Stated Rate of Return
5%
7%
12%
10%
Market Rate of Return 7%
8%
12%
9%
19.
% BD Company issues 6%, 10-year bonds with a
face amount of $1,000,000 on January 1, 20A for
$1,000,000. Interest is paid semiannually on June 30 and
December 31. What was the market interest rate for the
bond issuance?
Transcribed Image Text:18. Given the information below, which bond(s) will be issued at a discount? Bond 1 Bond 2 Bond 3 Bond 4 Stated Rate of Return 5% 7% 12% 10% Market Rate of Return 7% 8% 12% 9% 19. % BD Company issues 6%, 10-year bonds with a face amount of $1,000,000 on January 1, 20A for $1,000,000. Interest is paid semiannually on June 30 and December 31. What was the market interest rate for the bond issuance?
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