If a bond is selling at 103,it is selling at:
A)Maturity value and yields a 2% interest rate.
B)A discount.
C)A premium.
D)$103 per bond.

Name: If a bond is selling at 103,it is selling at: A)Maturity value and yields a 2% interest rate. B)A discount. C)A premium. D)$103 per bond.
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Question

Quizplus · Accepted Answer

If a bond is selling at 103, it is selling at a premium. This means that the bond is priced above its face value, and therefore the yield on the bond is lower than the coupon rate.

If a Bond Is Selling at 103,it Is Selling At