If bonds are issued at 101.25, this means thata. a $1,000 bond sold for $1,012.50.b. a $1,000 band sold for $101.25.c. the bonds sold at a discount.d. The bond rate of interest is 10.125% of the market rate of interest.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity...
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If bonds are issued at 101.25, this means that
a. a $1,000 bond sold for $1,012.50.
b. a $1,000 band sold for $101.25.
c. the bonds sold at a discount.
d. The bond rate of interest is 10.125% of the market rate of interest.

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