When a Bond Sells at a Premium

question 81

Multiple Choice

When a bond sells at a premium:

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

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Definitions:

Input Device

A hardware device used to send data to a computer allowing the user to interact with and control it. This includes devices like keyboards and mice.

Main Circuit Board

The primary electronic board within a computer or other electronic system that holds and allows communication between many of the crucial electronic components.

Motherboard

The main circuit board of a computer that controls the other components in the system.

Pointing Device

A hardware input device used to interface with a computer screen or monitor, such as a mouse or trackpad.