Respuesta :
Risk premiums on corporate bonds tend to decreases during business cycle expansions and increases during recessions, everything else held constant.
A bond that is sold for more than it is worth. when the prevailing interest rate is lower than the coupon rate.
Corporate bond risk premiums have become typically anticyclical, meaning they rise during recessions as well as fall throughout expansions of the business cycle.
Bonds that trade above their face value or cost more than their face value are referred to as premium bonds. Since its interest rate has been higher than those of the current market, a bond may trade at a premium. The bond's price may also increase as a result of the company's as well as the bond's credit ratings.
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