A $500,000 bond issue sold for $510,000. Therefore, the bonds:
A) Sold at a premium because the stated interest rate was higher than the market rate.
B) Sold for the $500,000 face amount plus $10,000 of accrued interest.
C) Sold at a discount because the stated interest rate was higher than the market rate.
D) Sold at a premium because the market interest rate was higher than the stated rate.
Answer: A
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