Answer is that the bond is selling at a premium

Answer is that the bond is selling at a premium, but explanation says ...

The reason the bond is trading at a premium in this case is because the bond offers a superior coupon/nominal yield at 8% (which is fixed) to ...

What Does It Mean When a Bond Is Selling at a Premium? Is It a ...

When a bond sells at a premium, its purchase price is higher than its face value. This often occurs when the bond's coupon rate is more than current market ...

Solved If a bond is selling at a premium (i.e., at a price | Chegg.com

Interest rates must have gone up since the bond was issued. The coupon rate is higher than the yield to maturity. Your solution's ready to go! Our expert help ...

Solved If a bond is selling at a premium, that is, the | Chegg.com

Question: If a bond is selling at a premium, that is, the bond's current market price is greater than its par value,and the bond's required ...

A bond is selling at a premium. This indicates that: a) The yield to ...

Final answer: When a bond is selling at a premium , it means market price is higher than its face value. This usually happens because the ...

If a bond is currently selling at a premium, then: a) The current yield ...

Expert-Verified Answer · Final answer: When a bond is selling at a premium, meaning its market price is higher than its face value, the current ...

True or false? If a bond is selling at a premium, its current yield will ...

Therefore, when a bond sells at a premium, its current yield and YTM would be lower than the interest rate on bonds. Help improve Study.com. Report an error ...

You can be sure that a bond will sell at a premium to par wh | Quizlet

Find step-by-step solutions and your answer to the following textbook question: You can be sure that a bond will sell at a premium to par when ______.

Which of the following statements is CORRECT? a. If a bond is ...

Answer and Explanation: 1 · a. If a bond is selling at a premium, this implies that the bond's yield to maturity exceeds its coupon rate. · b. If a coupon bond is ...

The answer to the question is highlighted in blue

If market interest rates for corporate bonds of similar risk drop from 7 percent to 6 percent, which of the following bonds would sell for a premium?

[Solved] A bond selling at a premium has a Multiple Choice current ...

The correct answer to your question is: A bond selling at a premium has a current yield that is less than the coupon rate but greater than the yield to maturity ...

A bond is selling at a premium this indicates that group of

Answers : · Lower Interest Rates: The bond has a higher coupon rate compared to current market interest rates. · Strong Credit Quality: The issuer ...

A bond will sell at a premium (above par value) If: A. the | Quizlet

Find step-by-step solutions and your answer to the following textbook question: A bond will sell at a premium (above par value) If: A. the market value of ...

Amortization of Bond Premiums and Bond Discounts

If the market rate exceeds the coupon rate, the bonds will be selling at a discount. The issuance price is determined by discounting the payments to the present ...

14.1: Determining the Value of a Bond - Mathematics LibreTexts

If the bond sells for a price lower than its face value, the difference is known as a bond discount. The amount of the premium or discount ...

Problem 22 Bond Prices versus Yields a. W... [FREE SOLUTION] | Vaia

Bonds sell at a premium when their coupon rate is higher than prevailing market interest rates, and at a discount when their coupon rate is lower; selling at ...

Why would someone buy a bond at a premium? - Quora

Typically, someone buys a bond at a premium because the coupon rates are higher than the yield, or going rate. This means that the more of ...

Yield to Maturity vs. Coupon Rate: What's the Difference?

If the investor buys the bond at a discount, its yield to maturity will be higher than its coupon rate. A bond purchased at a premium will have a yield to ...

Bond Yield | Formula + Calculator - Wall Street Prep

Conversely, if the bond price in the market is $1,100 (“110”), the bond is selling at a premium, i.e. priced by the market above its face value. How Do Bond ...

Discount & Premium Bonds | Definition, Advantages & Disadvantages

... selling bonds. Essentially, a corporation offers bonds for sale and ... Plans · Student Solutions · Teacher Solutions · Study.com for Schools · Working Scholars® ...