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:

Millennials

The generation born after 1980, the first to come of age and enter emerging adulthood in the new millennium.

Generation

A group of individuals, most often referring to people, born and living around the same time, typically segmented by decades.

After 1980

Refers to the time period following the year 1980, often used in discussions about cultural, technological, or societal changes.

Ethological

Pertains to the scientific study of animal behavior, particularly in natural environments, focusing on the evolutionary implications of behavior.