When Do Bonds Sell at a Premium

question 18

Multiple Choice

When do bonds sell at a premium?

• A) when the issuing company has a better reputation than other companies in the same business
• B) when the market rate of interest is less than the stated interest rate at the time of issue
• C) when the yield rate of interest is more than the stated rate at the time of issue
• D) when the issuing company agrees to repay the maturity before the due date

---

Definitions:

Ureters

Tubes that carry urine from the kidneys to the bladder, playing a crucial role in the urinary system.

Kidneys

Paired organs of the vertebrate urinary system that regulate the chemical composition of the blood and produce a waste product called urine.

Nitrogenous Wastes

Metabolic waste compounds that contain nitrogen, such as urea and ammonia, which are primarily excreted by the kidneys in animals.

Nucleic Acids

Large molecules composed of nucleotides that carry genetic information, including DNA and RNA.