Asked by
Cyrus Grimes
on Dec 02, 2024Verified
A bond that sells for less than par value is said to be selling at a premium.
Par Value
A nominal value assigned to a security, such as a share of stock, representing the minimum price at which the security can be issued.
Premium
An amount paid in addition to the standard or expected cost, often for insurance coverage or higher quality goods and services.
- Absorb the essential knowledge of bond pricing, yield, and the factors determining bond valuation.
Verified Answer
SS
Learning Objectives
- Absorb the essential knowledge of bond pricing, yield, and the factors determining bond valuation.