When a bond is selling for more than its face value, it is said to be selling at a:
A)discount.
B)premium.
C)commission.
D)conservative value.
E)prospectus value.

Question

Quizplus · Accepted Answer

When a bond is selling for more than its face value, it is said to be selling at a premium. This means that investors are willing to pay more than the face value of the bond because it offers a higher interest rate than other comparable investments.

When a Bond Is Selling for More Than Its Face