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Virginia Vista Company has 6%, 10-year bonds payable that mature on June 30, 2028. The bonds are issued on June 30, 2018, and Virginia Vista pays interest each June 30 and December 31. Will the bonds be issued at face value, at a premium, or at a discount if the market interest rate on the date of issuance is 4%? If the market interest rate is 7%? If the market interest rate is 4%?
Sagot :
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