As a result of the interest rate being 8% and the coupon being 7%, these bonds will sell at a price less than $500,000.
<h3>Why would the bonds sell less than $500,000?</h3>
When a bond's coupon rate is less than the market rate of interest, it is referred to as a discount bond.
This means that the bond will be sold at a price that is less than its face value amount. In this case the market rate is higher than the coupon rate so the bond will sell for less than $500,000.
Find out more on discount bonds at brainly.com/question/23265123.
The term that describes what a manufacturer spends for goods or services is called the 'cost.' When the manufacturer sells it to the consumer, this is called the price, and it is more often times than not, marked up in price.
