A bond issued at a price above its maturity or par value is sold at a premium.

Name: A bond issued at a price above its maturity or par value is sold at a premium.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. When a bond is sold for more than its face value or par value, it is considered a premium bond. Investors may buy premium bonds in hopes of earning a higher yield to maturity than they would with a bond sold at par or discount value.

A Bond Issued at a Price Above Its Maturity or Par