If a Bond Is Purchased at a Premium, Which of the Following

question 46

Multiple Choice

If a bond is purchased at a premium, which of the following is true?

• A)The coupon rate is greater than the market rate.
• B)The coupon rate is less than the market rate.
• C)The bond will pay less annual interest now than when it was originally issued.
• D)The par value is equal to the present value.
• E)The bond will pay semi-annual payments.

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