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Explain arc blow and when it occurs.
Above Face Value
A situation where a financial instrument, such as a bond, is traded for more than its original issue price.
Issued Bonds
Debt securities that a company or government has sold to investors to raise capital.
Premium on Bonds Payable
The excess amount over the face value that investors pay when they purchase a bond, representing an additional cost to the issuer.
Semiannual Interest
Interest payments made twice a year on a loan or investment.
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