Asked by Mitchell Peters on May 09, 2024
Verified
Is a bond quoted at 105 selling at a premium or a discount?
Premium
An amount paid for an insurance policy, or the price above the normal or nominal cost in financial transactions.
Discount
A reduction from the usual cost of something, often expressed as a percentage off the original price.
- Understand the principle of purchasing bonds above or below their par value.
Verified Answer
MS
Learning Objectives
- Understand the principle of purchasing bonds above or below their par value.