Type of bond for which bonds present value is greater than bonds face value is classified as
A. coupon bond
B. interest bonds
C. discount bond
D. premium bond
Answer: Option D
Solution(By Examveda Team)
Type of bond for which bonds present value is greater than bonds face value is classified as premium bond. A premium bond is a bond trading above its face value or in other words; it costs more than the face amount on the bond. A bond might trade at a premium because its interest rate is higher than current rates in the market.This Question Belongs to Management >> International Finance And Treasury
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