If a bond is sold at 101,its stated rate of interest would be:
A)equal to the market rate.
B)unrelated to the market rate.
C)higher than the market rate.
D)lower than the market rate.

Name: If a bond is sold at 101,its stated rate of interest would be: A)equal to the market rate. B)unrelated to the market rate. C)higher than the market rate. D)lower than the market rate.
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Question

Quizplus · Accepted Answer

When a bond is sold at a premium (above 100), it indicates that its stated rate of interest is higher than the current market rate.

If a Bond Is Sold at 101,its Stated Rate of Interest