Auerbach Inc

Auerbach Inc. issued 4% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 6%.
-Auerbach issued the bonds:

A) At par.
B) At a premium.
C) At a discount.
D) Cannot be determined from the given information.

Correct Answer:

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