Question: Could someone please explain how/why the bond is listed at a premium. M10-8 (Static) Determining Bond Discount or Premium from Quoted Price [LO 10-3] On

Could someone please explain how/why the bond is listed at a premium.

M10-8 (Static) Determining Bond Discount or Premium from Quoted Price [LO 10-3] On February 6, 2021, there was a quoted bond price of 130.03 for Tough Motor Company's 7.45 percent bonds maturing on July 16. 2031. 1. Were the bonds listed at a discount or premium? Premium Discount 2. Does this mean the market interest rate for comparable bonds was higher or lower than 7.45 percent? Lower than 7.45 percent Higher than 7.45 percent

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