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- If a bond is attractive, it will experience a _____ amount of demand and ultimately sell for a _____. High; premium High; discount Low; premium Low; discountf. A premium bond sells for ____________ as maturity approaches.A premium occurs when the issue price of a bond is above its face amount. True or False True False
- When a bond sells at a discount, the carrying value ________ after each amortization entry. A. increases B. decreases C. stays the same D. cannot be determinedWhat happens when a bond's market rate is less than the stated rate?dons premium or discount refer to the interest rate, higher of lower than what? or does it refer to the value of the bond