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    Premium Bonds and Investors' Income

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    When a company issues a bond at a premium:

    a) The company is more profitable than most companies in its industry
    b) Investors perceive the bond to be a very safe investment
    c) The investors' interest income will be less than the interest received each year
    d) The investors' interest income will be more than the interest received each year

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    https://brainmass.com/business/accounting/premium-bonds-investors-income-518542

    Solution Preview

    The correct answer is: c) The investors' interest income will be less than the interest received ...

    Solution Summary

    The attached file contains the answer to the question of "What Happens When a Company Issues a Bond at a Premium".

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