JMR bought 15 Z Corporation's $1,000 bonds for $15,270 total, on April 1, 2014, (five years prior to maturity).The bonds pay 8% semi-annual interest on April 1 and October 1.On December 31, 2014, the bonds had a market value of $14,950 (not a permanent decline).JMR purchased these bonds at:

Question

Quizplus · Accepted Answer

JMR bought the bonds for more than their face value ($15,270 vs. 15 x $1,000 = $15,000), which means they were purchased at a premium.

JMR Bought 15 Z Corporation's $1,000 Bonds for $15,270 Total