Regardless of an assisted living community's fee structure, when choosing a senior living residence, it is important to consider the quality of care, how the resident adapts to the new environment and the long-term affordability of the community.
When a bond is issued at a premium, that means that the bond is sold for an amount greater than the bond's face value. This generally means that the bond's contract rate is greater than the market rate.
Bond trading at premium or discount; maturity, yield, credit spread. 1. Consider a five-year, default-free bond with annual coupons of 5% and a face-value of $1000. a) Without doing any calculations, determine whether this bond is trading at a premium or at a discount.