The debenture issued at par above the nominal value is said to be issued at a
Answer Details
A debenture that is issued at par above the nominal value is said to be issued at a premium. This means that the price at which the debenture is issued is higher than its face value or nominal value. For example, if a debenture has a nominal value of $100 and is issued at $105, it is said to be issued at a premium of $5. This is because the investor is willing to pay more for the debenture in order to receive a higher rate of return. Simply put, a premium means that the price paid for the debenture is higher than its face value.