When a fixed income security is being traded at the price above its face value it is trading
A) At a discount.
B) At par.
C) At a premium.
D) Flat.
E) No accrual.

Question

Quizplus · Accepted Answer

When a fixed income security is trading at a price above its face value, it is said to be trading at a premium. This means that investors are willing to pay more than the face value to obtain the security's future cash flows.

When a Fixed Income Security Is Being Traded at the Price