Bonds issued by Animite Energy are selling at a rate of 95.230 . Which of the following statements is true for a bond of par value \( \$ 1,000 \) ? a. The market value includes a premium of \( \$ 5.23 \). b. The market value includes a premium of \( \$ 10.50 \). c. The market value includes a discount of \( \$ 47.70 \). d. The market value includes a discount of \( \$ 95.23 \).

To determine the correct statement regarding the bonds issued by Animite Energy, we need to understand the relationship between the selling price of the bond and its par value. The bonds are selling at a rate of 95.230, which means they are selling for 95.230% of their par value. The par value of the bond is \( \$ 1,000 \). To find the market value of the bond, we calculate: \[ \text{Market Value} = \text{Par Value} \times \left(\frac{\text{Selling Price}}{100}\right) = 1000 \times \left(\frac{95.230}{100}\right) = 1000 \times 0.95230 = 952.30 \] Now, we can find the difference between the par value and the market value: \[ \text{Discount} = \text{Par Value} - \text{Market Value} = 1000 - 952.30 = 47.70 \] Since the market value is less than the par value, the bond is selling at a discount of \( \$ 47.70 \). Now, let's evaluate the options: a. The market value includes a premium of \( \$ 5.23 \). (False) b. The market value includes a premium of \( \$ 10.50 \). (False) c. The market value includes a discount of \( \$ 47.70 \). (True) d. The market value includes a discount of \( \$ 95.23 \). (False) The correct answer is: **c. The market value includes a discount of \( \$ 47.70 \).**