The excess of the proceeds over the face amount of a bond is called premium on bonds.

Name: The excess of the proceeds over the face amount of a bond is called premium on bonds.
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This statement is true. Premium on bonds refers to the amount by which the bond's selling price exceeds its face value or par value. It is essentially an additional cost that the bond issuer incurs in order to obtain funding through bond sales.

The Excess of the Proceeds Over the Face Amount of a Bond