If the Value of a Treasury Bond Was Higher Than

question 56

Multiple Choice

If the value of a Treasury bond was higher than the value of the sum of its parts (STRIPPED cash flows) , you could

• A)profit by buying the stripped cash flows and reconstituting the bond.
• B)not profit by buying the stripped cash flows and reconstituting the bond.
• C)profit by buying the bond and creating STRIPS.
• D)not profit by buying the stripped cash flows and reconstituting the bond and profit by buying the bond and creating STRIPS.

---

Definitions:

Maslow's

Relating to the hierarchy of needs theory developed by Abraham Maslow, which posits that human motivations are influenced by a progression of needs, starting from basic survival needs up to self-actualization.

Physiological Needs

Basic physical requirements for human survival, such as food, water, shelter, and clothing, that are essential to maintaining life.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the pursuit of realizing one's own potential and self-fulfillment.

Growth Needs

The desire for personal development, self-improvement, and the realization of one's potential.