50 River, Inc. issued bonds with a maturity amount of P450,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that Group of answer choices the nominal rate of interest exceeded the market rate. the market and nominal rates coincided. no necessary relationship exists between the two rates. the effective yield or market rate of interest exceeded the stated (nominal) rate.

50 River, Inc. issued bonds with a maturity amount of P450,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that Group of answer choices the nominal rate of interest exceeded the market rate. the market and nominal rates coincided. no necessary relationship exists between the two rates. the effective yield or market rate of interest exceeded the stated (nominal) rate.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 18MC: OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000....

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