Final answer:
A bond issued at more than its face value is issued at a premium, often because its interest rate is above the prevailing market rates, making it more desirable to investors.
Step-by-step explanation:
When a bond is issued at more than its face value, it is issued at a premium. The face value is the amount that the borrower agrees to pay back at the bond's maturity along with the last interest payment. The issuing of a bond at a premium typically occurs when the bond's stated interest rate is higher than the prevailing market interest rates. This makes the bond more attractive since it offers a higher return than what is currently available, so investors are willing to pay more than the bond's face value for this benefit.