A bond selling for more than the face value is selling at a premium.

Name: A bond selling for more than the face value is selling at a premium.
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Question

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When a bond is selling for more than its face value, it is said to be selling at a premium. This occurs when the coupon rate on the bond is higher than the prevailing interest rates in the market, causing investors to pay more for the bond than its face value in order to earn the higher interest payments.

A Bond Selling for More Than the Face Value Is