Question:karson Inc. issues 10-years bonds with maturity value of $200,000. If the bonds are issued at a premium, this indicates that: 

A the contractual interest rate exceeds the market interest rate. 
B the market interest rate exceeds the contractual interest rate. 
C the contractual interest rate and the market interest rate are the same. 
D no relationship exists between the two rates. 

+ Answer
A 

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Md. Saydul Alam

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