Question: why are the second and fifth quesions false Answer 1 of 1 Done Answer True/False questions about pricing a bond premium: 1. The premium bond

why are the second and fifth quesions false

Answer 1 of 1 Done Answer True/False questions about pricing a bond premium: 1. The premium bond is a bond trading above its face value, it costs more than the face amount on the bond. (T) 2. The bonds are sold at premium when the coupon rate is lower than prevailing interest rate. (F) 3. Premium bonds are usually issued by well-run companies with solid credit ratings. (T) 4. The higher price of premium bonds partly offsets their higher coupon rates. (T) 5. Bondholders risk paying too much for a premium bond if it is undervalued. (F)

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