Ray Corp. issued bonds with a face amount of $200,000. Each $1,000 bond contained detachable stock warrants for 100 shares of Ray's common stock.
Total proceeds from the issue amounted to $240,000.
The market value of each warrant was $2, and the market value of the bonds without the warrants was $196,000.
The bonds were issued at a discount of
A. $0
B. $678
C. $4,000
D. $33,898
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