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A $25,000 10-year bond that pays interest semiannually with a 7% stated interest rate is...

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Accounting

A $25,000 10-year bond that pays interest semiannually with a 7% stated interest rate is issued when the market interest rate is 6%. The maturity value of this bond will be:

A. equal to the issue price.

B. higher than the face value.

C. less than the issue price.

D. higher than the issue price.

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