Evaluate the decision of a company to issue bonds at a discount when the market interest rate is higher than the stated rate. What are the potential benefits and drawbacks?

Issuing bonds at a discount can attract investors despite a lower stated rate, but results in less cash upfront.

Issuing bonds at a discount has no impact on investor attraction or cash received from the bond sale.

Issuing bonds at a discount results in receiving more cash upfront but may deter potential investors completely.

Issuing bonds at a discount ensures receiving more cash upfront and attracts significantly more investors.