Economics · Bond Valuation
Which of the following statements regarding bonds is NOT true?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The premium or discount on a bond is the difference between its market price and its face value.
- 2A bond is at a discount if its market price is less than its face value.
- 3A bond is at a premium if its market price is less than its face value.✓
- 4A bond has a face value.
Correct answer
A bond is at a premium if its market price is less than its face value.
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