Q577
A bond whose price will rise above its face value is classified as
A.
premium face value
B.
premium bond
AnswerC.
premium stock
D.
premium warrants
Answer: Option B
Solution
Answer: Option B
Solution:
A bond whose price will rise above its 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.