When a bond sells at a premium: O The contract rate is above the market rate O The contract rate is equal to the market rate O The contract rate is below the market rate O It means that the bond is a zero coupon bond The bond pays no interest

When a bond sells at a premium: O The contract rate is above the market rate O The contract rate is equal to the market rate O The contract rate is below the market rate O It means that the bond is a zero coupon bond The bond pays no interest

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

When a bond sells at a premium:
O The contract rate is above the market rate
O The contract rate is equal to the market rate
O The contract rate is below the market rate
O It means that the bond is a zero coupon bond
O The bond pays no interest

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