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1)A $1,000, two-year bond is issued on January 1, 2020 with a coupon rate of...

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Accounting

1)A $1,000, two-year bond is issued on January 1, 2020 with a coupon rate of 8%. The market demands a yield rate of 10% for investments of similar risk. Interest will be paid on June 30th and December 31st each year. On January 1, 2020, the selling price of the bond will be

A)$1,000.

B)less than $1,000.

C)greater than $1,000.

D)cannot be determined from the information.

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