Cuso Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at a

Cuso Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at a

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 Cuso Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at a premium, what does this indicate?






The contractual interest rate exceeds the market interest rate.


 


The contractual interest rate and the market interest rate are the same.


 


The market interest rate exceeds the contractual interest rate.


 


No relationship exists between the market and contractual rates.

 
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