Question: When a bond sells at a premium: Multiple Choice 0 2 : 4 1 : 4 4 The contract rate is below the market rate.
When a bond sells at a premium:
Multiple Choice
::
The contract rate is below the market rate.
The contract rate is equal to the market rate.
It means that the bond is a zerocoupon bond.
The bond pays no interest.
The contract rate is above the market rate.
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