If the face interest rate at the date of bond issuance exceeds the market interest rate,the bond will probably be sold at a premium.

Question

Quizplus · Accepted Answer

If the face interest rate at the date of bond issuance exceeds the market interest rate, it means that the bond offers a higher interest rate than what investors can obtain in the market. This makes the bond more attractive, and investors may be willing to pay more than the face value of the bond to obtain the higher interest payments. Therefore, the bond will likely be sold at a premium.

If the Face Interest Rate at the Date of Bond