Bond interest paid is:
A) higher when bonds sell at a discount and lower when bonds sell at a premium.
B) the same whether bonds sell at a discount or a premium.
C) lower when bonds sell at a premium.
D) higher when bonds sell at a discount.

Question

Quizplus · Accepted Answer

Bond interest paid is determined by the coupon rate and the face value of the bond, not by whether the bond sells at a discount or a premium.

Bond Interest Paid Is