A bond with a face value of $1,000 that sells for $1,000 in the market is called a ________ bond.
A)par value
B)discount
C)premium
D)zero coupon
E)floating rate

Question

Quizplus · Accepted Answer

A bond with a face value of $1,000 that sells for $1,000 in the market is called a par value bond, which means it is selling at its face value. Bonds that sell above face value are called premium bonds, while bonds that sell below face value are called discount bonds. Zero coupon bonds do not pay interest but are sold at a deep discount, and floating rate bonds have variable interest rates.

A Bond with a Face Value of $1,000 That Sells