When a bond is issued at more than its face value,it is issued at:
A)a surplus.
B)par value.
C)a discount.
D)a premium.

Name: When a bond is issued at more than its face value,it is issued at: A)a surplus. B)par value. C)a discount. D)a premium.
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Question

Quizplus · Accepted Answer

A bond premium is the excess of its issue price over its face value.Buyers are willing to pay a premium for bonds because the features of the bond (e.g. ,stated interest rate)are attractive to the buyers.

When a Bond Is Issued at More Than Its Face