A(n) ______ bond has a market price that is greater than par value.

Name: A(n) ______ bond has a market price that is greater than par value.
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A premium bond is one that is trading at a price higher than its par value (or face value). This can happen when interest rates have fallen since the bond was issued, making the bond's fixed interest payments more attractive to investors. As a result, investors are willing to pay more than face value to buy the bond, driving up its market price.

A(n) ______ Bond Has a Market Price That Is Greater