SELECT WHICH OPTION IS CORRECT.

If a company issues bonds at a premium, the investor will pay

MoreLessthan the face amount, to buy the bond.

If a company issues bonds at a discount, the investor's yield to maturity on the bonds will be

MoreLessthan the coupon interest rate if they hold the bonds until the maturity date.

Company A issues one bond to an investor at a price of $1,010.The bond pays 5% interest annually.

Does the bondholder earn more, or less, than 5% on their investment, if they hold the bond to the maturity date?MoreLess

List some reasons a company's bonds might not sell at par ($1,000 per bond) on the day the bond issue closes.

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