Issuing Bonds at a Discount or a Premium


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question 1 of 3

Which of the following statements is true about bonds selling at a premium?

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1. Which of the following is true about selling bonds at a discount?

2. Which of the following statements is true regarding bond coupon interest payments?

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About This Quiz & Worksheet

Both of these assessments will help prepare you to determine what a bond is as well as understand principles of premiums and discounts for bonds. In order to do well on the quiz portion, you will need to understand the characteristics of bonds.

Quiz & Worksheet Goals

In these assessments, you will be assessed over:

  • Bonds selling at a premium
  • Selling bonds at a discount
  • Characteristics of bonds
  • Bond coupon interest payments

Skills Practiced

These assessments can be used to help you exercise these skills:

  • Knowledge application - use your knowledge to answer questions about the characteristics of bonds
  • Reading comprehension - ensure that you draw the most vital information from the lesson about premiums and discounts for bonds
  • Interpreting information - verify that you can read information regarding selling bonds at a discount and interpret it correctly

Additional Learning

If you are interested in learning more about bonds and their characteristics, you can review the engaging lesson called Issuing Bonds at a Discount or a Premium. This lesson gives you the chance to:

  • Define bond
  • Compare and contrast premium and discount
  • Examine why the present value is calculated
  • Understand why some investors buy bonds at a premium