What is the difference between a bond discount and a bond premium
Bond discount: Bonds that are issued at a price that is less than its par value will be considered bonds issued at a discount. Additionally, bonds that are issued at a discount will be those with a market rate that is greater than the bonds stated rate.
Bond premium: Bonds that are issued at a price that is greater than its par value will be considered bonds issued at a premium. Additionally, bonds that are issued at a premium will be those with a market rate that is less than the bonds stated rate.
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