When a Bond Sells at a Premium

question 217

Multiple Choice

When a bond sells at a premium:

• A) The contract rate is below the market rate.
• B) The bond pays no interest.
• C) The contract rate is above the market rate.
• D) It means that the bond is a zero coupon bond.
• E) The contract rate is equal to the market rate.

---

Definitions:

Employee's Hours

The total time an employee is engaged in work for an employer, typically measured per day or week.

Private Employers

Organizations or individuals that operate and manage businesses which are not owned or controlled by the government, responsible for hiring employees under private employment agreements.

Pension Plans

Financial programs that provide income during retirement, sourced from employer and employee contributions.

Health Plans

Insurance policies or arrangements designed to cover healthcare costs and medical expenses.