These bonds will sell at a price that is $500,000.
A bond is a type of debt instrument that enables businesses to fulfil their goals without worrying about the necessary funding. These are also fantastic investment instruments that help investors lower their taxable income.
The bonds would be sold at a price equal to their principal value if the stated and market interest rates on the bonds were the same. If the current market rate is higher or lower than the coupon rate, the sale amount will differ from the face value. The bonds are provided at a premium if the effective rate is higher. In contrast, a lower effective yield would cause the bonds to be traded for a lower price.
Learn more about bonds:
https://brainly.com/question/23266047
#SPJ4