A Bond That Is Selling in Over Its Par Value

question 80

Multiple Choice

A bond that is selling in over its par value.

• A) Overpriced bond
• B) Underpriced bond
• C) Premium bond
• D) Discount bond

---

Definitions:

Long-Term Supply Agreements

Contracts between companies and their suppliers to provide goods or services over an extended period, often to secure pricing or ensure supply.

Cash Flow Activities

Financial transactions and events that affect the inflow and outflow of cash for a company.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company, revealing how a company raises and spends money.

Current Assets

Holdings that are planned to be turned into cash, sold off, or consumed in the span of one year or over the course of the operating cycle, if it extends beyond a year.