On April 1, 2020, Olsen Products, Inc. issued at par $25 million of 10%, 10-year...
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Accounting
On April 1, 2020, Olsen Products, Inc. issued at par $25 million of 10%, 10-year bonds. Interest is payable semiannually each April 1 and October 1.
- If these bonds were initially sold at a market rate of 9%, would these bonds sell at a discount or premium?
- Given your answer , would the interest expense increase or decrease due to the premium/discount?
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