When a fixed income security is being traded at the price above its face value it is trading
A) at a discount.
B) at par.
C) at a premium.
D) flat.
E) no accrual.

Question

Quizplus · Accepted Answer

When a fixed income security is being traded at a price above its face value, it is said to be trading at a premium. This means that investors are willing to pay more than the face value for the security, which indicates that the security is more attractive than other similar securities, perhaps due to its coupon rate or other factors.

When a Fixed Income Security Is Being Traded at the Price