Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term.
-Premium on bonds
A)Market rate higher than stated rate.
B)Market rate less than stated rate.
C)Legal, accounting, printing.
D)No maturity payment.
E)Many separate maturity dates.

Question

Quizplus · Accepted Answer

When a bond is issued at a premium, it means the market interest rate is lower than the stated interest rate on the bond. Investors are willing to pay more for the bond because it offers a higher return than the prevailing market rates.

Listed Below Are 5 Terms Followed by a List of Phrases