Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-When do bonds usually sell at a premium?

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
-When do bonds usually sell at a premium?

Quizplus · Accepted Answer

Bonds usually sell at a premium when the stated rate of interest on the bonds is greater than the market rate of interest. This is because investors are willing to pay a higher price for the higher interest payments that the bond will provide. When the market rate of interest is lower than the stated rate of interest on the bond, the bond will sell at a discount since investors can earn a higher return on their money elsewhere.

Use the Present Value and Future Value Tables Included in Appendix