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A Bond Is Said to Be Issued at Premium When

Question 10

Multiple Choice

A bond is said to be issued at premium when:


A) the coupon rate is set lower than the coupon rate of par bonds of same maturity and credit risk.
B) the quoted price exceeds the face value of the bond.
C) the quoted price equals the face value of the bond.
D) the face value exceeds the quoted price of the bond.

Correct Answer:

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