A(n) ______ Bond Has a Market Price That Is Greater

question 107

Multiple Choice

A(n) ______ bond has a market price that is greater than par value.

• A) Undervalued
• B) Discount
• C) Par
• D) Premium
• E) Callable

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Definitions:

Advantage

The condition of being in a favorable or superior position relative to competitors or alternatives.

Treasury Stock

Shares initially part of the company's outstanding shares that have been repurchased by the company.

Par Value

Par value is the nominal or face value of a bond, share of stock, or a coupon as stated by the issuer.

Stated Value

A per-share amount set by the board of directors for no-par value stock, which is not determined by market forces.