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If bonds are issued at a premium, e.g., a $1,000 face value bond with a contractual rate of 5% is issued for $1,050, it means

If bonds are issued at a premium, e.g., a $1,000 face value bond with a contractual rate of 5% is issued for $1,050, it means that the The funancial strength of the isstuing company is strong. The compary's cash flow is higher than industry average. Market interest rate is higher than the contractual rate. Market interest rate is lower than the contractual rate

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