Generate the highest proceeds upon issuance

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Reference no: EM131263833

Which one of the following 6-year bonds with a maturity value of $75,000 would generate the highest proceeds upon issuance?

A bond with a stated interest rate of 8% and a prevailing market rate of 8%

A bond with a stated interest rate of 7% and a prevailing market rate of 9%

A bond with a stated interest rate of 6% and a prevailing market rate of 6%

A bond with a stated interest rate of 9% and a prevailing market rate of 7%

Reference no: EM131263833

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