Answer: more than $500,000
Explanation:
From the question, we are informed that a bond is issued with a face amount of $500,000 and a stated interest rate of 10% while the current market rate of interest is 8%.
These bonds will sell at a price that is more than $500,000. This is because the market rate of 8% is lower than the stated interest rate of 10%, then the bind will have to be sold at a price higher than the face amount.
