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Skylar Company issued $50,000,000 of its 10% bonds at par on January 1, 2017. On December 31, 2017, the bonds were trading on the bond exchange at...

Skylar Company issued $50,000,000 of its 10% bonds at par on January 1, 2017. On December 31, 2017, the bonds were trading on the bond exchange at 102 (102% of face value). What happened to the market rate of interest between the issue date and the end of the year?

The market rate increased.

The market rate decreased.

The market rate stayed the same.

The change in the market rate cannot be determined.

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