What Does It Mean for a Bond to Sell at a Premium

question 171

Multiple Choice

What does it mean for a bond to sell at a premium?

• A)The yield to maturity is above the coupon rate.
• B)The bond has an exceptionally good credit rating.
• C)The bond rating is above investment grade.
• D)The bond sells for more than par value.

Recognize the importance of minimizing interruptions and distractions during interviews.

Identify effective communication strategies for interviews.

Understand the types of interviews paralegals may conduct and the significance of each.

Understand the concepts of producer surplus, consumer surplus, and deadweight loss in trade contexts.

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Definitions:

Contractual Liability

Contractual liability involves obligations that a party has agreed to assume in a contract, making them legally responsible for fulfilling the terms of the agreement.

Transfer Warranty

A guarantee in legal documents, especially in sales of goods, assuring the recipient that the transferor has valid title and that the transfer is rightful.

Presentment Warranty

Assurance given in a transaction that certain facts are true as of the time of the deal, generally related to financial instruments.

Draft

A preliminary version of a document, plan, or design that is open for discussion, revision, or improvement.