The _______ value of a bond is also called its par value.Bonds with a current price greater than their par value sell at _______,while bonds with a current price less than their par value sell at _______.
A) premium; face value; a discount
B) discount; a premium; face value
C) face; a premium; a discount
D) premium; a reduction; a discount

Question

Quizplus · Accepted Answer

The par value of a bond is also called its face value. Bonds with a current price greater than their par value sell at a premium, while bonds with a current price less than their par value sell at a discount. This is in line with the definition provided in option C.

The _______ Value of a Bond Is Also Called Its