Which of the Following Statements Regarding Bond Discounts or Premiums

question 4

Multiple Choice

Which of the following statements regarding bond discounts or premiums is true?

• A) discount on a bond reduces the amount that the issuer has to repay to the lenders.
• B) premium on a bond increases the interest expense of the loan to the issuer.
• C) premium on a bond increases the amount that the issuer has to repay to the lenders.
• D) discount on a bond increases the interest expense of the loan to the issuer.

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Information that is repeated or conveyed in exactly the same words as originally presented or spoken.

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The main or essential part of a matter; the core idea or summary of information.

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The process of adding more detail or information to something, often to clarify or enhance understanding.

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The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.