A $500,000 bond issue sold for 98. therefore, the bonds:
a. sold at a discount because the stated rate of interest was lower than the effective rate
b. sold for the $500,000 face amount less $10,000 of accrued interest
c. sold at a premium becasue the stated rate of interest was higher than the yield rate
d. sold at a discount because the effective interest rate was lower than the face rate.