Allure Company planned to raise $100,000 by issuing bonds. The bond certificates were printed bearing an interest rate of 8%, which was equal to the market rate of interest. However, before the bonds could be issued, economic conditions forced the market rate up to 9%. If the life of the bonds is 6 years and interest is paid annually on December 31, how much will Allure receive from the sale of the bonds

The issue Price will be less than $ 100000 because the 9 % market rate of interest was more than the stated (coupon) rate.

Explanation:

Because  the interest rate of market rate is above  the coupon rate , so the buyers of the bond will be ready to pay less than the bond face value what this means is that,  a discount would be issue by the bond.

Since the coupon rate is 8 %  and the market interest rate is 9 % we conclude that  issue price will be less than face value that is $ 100000.

a

explanation:

i know

answer(b) equal; set period;