Respuesta :
If bonds are issued with a stated interest rate higher than the market interest rate, the bonds will be issued at premium.
A premium bond is defined as any type of bond trading that is claimed to be over a certain face value or to frequently cost much more than the bond's face value.
A freshly issued debt that is sold at a price above par is referred to as term bonds issued at a premium. The corporation usually decides to use the straight-line technique to amortise the premium over the bond's term when a bond is issued at a premium.
A bond is a financial instrument that may be traded at a premium because its interest rate is seen as being greater than the market's current rates. As a result, bonds will be issued at a premium if their stated interest rate is greater than the market rate.
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