Bond’s Trading Status [Questions]

1. Bonds can trade at a 'Premium', 'Par', or 'Discount'.

a. True
b. False

2. If the price of a bond ("P") is greater than its Par value, the bond
trades at:
a. Premium
b. Par
c. Discount

3. If P < Par for a bond, then it trades at:

a. Premium
b. Par
c. Discount

4. A bond that's issued at Premium will always trade at a Premium,

including at maturity.
a. True
b. False

5. Buying a bond at a Discount is preferred to buying one at a Premium

because you can buy it for lesser and thus earn more money.
a. True
b. False

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