If F = Face Value and F = Maturity in Days

question 54

Multiple Choice

If F = face value and f = maturity in days, the formula for the purchase price (P) of a discount security in terms of the discount (d) is:

• A) P = F [1 - (f/365) × d].
• B) P = F / [1 + (f/365) × d].
• C) P = F / [1 + (d/365) × f].
• D) P = F × [1 - (d/365) × f].

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Definitions:

Motivate

To provide reasons, encouragement, or incentives for individuals to behave in a desired way or even pursue certain goals.

Self-actualization

A psychological concept referring to the realization or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.

Maslow

Refers to Abraham Maslow, a psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority.

Herzberg

Refers to Frederick Herzberg's Two-Factor Theory, which posits that job satisfaction and dissatisfaction arise from two different sets of factors—hygiene factors and motivators.