When a bond sells for 101,the bond is selling at ________.
A)a discount
B)a premium
C)par
D)face value

Question

Quizplus · Accepted Answer

When a bond sells for more than its face value or par value, it is selling at a premium. A bond selling at a price higher than its face value means that investors are willing to pay more for the bond's higher interest rates than the current market rate. A bond selling at a discount means that its price is lower than its face value or par value, while a bond selling at par means that its price is equal to its face value or par value.

When a Bond Sells for 101,the Bond Is Selling at ________