Demetrius recently bought a bond with face value of $1000.He paid $1,150 for the bond.Demetrius' bond investment undoubtedly pays a higher interest rate than the going rate for similar bonds currently out on the market.

Question

Quizplus · Accepted Answer

The bond was bought for more than its face value, which means it is paying a higher interest rate than similar bonds on the market.

Demetrius Recently Bought a Bond with Face Value of $1000