When Will Bonds Sell Without a Premium or Discount

question 7

Multiple Choice

When will bonds sell without a premium or discount?

• A)When the coupon rate equals the par value.
• B)When the coupon rate is below the market rate.
• C)When the coupon rate is above the market rate.
• D)When the coupon rate is equal to the market rate.

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Definitions:

Need for Achievement

A psychological drive in individuals to accomplish tasks, achieve excellence, and reach high standards of performance.

Need for Power

is a psychological term referring to an individual's desire to control or influence others.

Need for Affiliation

A person's inherent desire to feel connected or involved with social groups or relationships.

Constructively Criticize

The act of offering valid and well-reasoned opinions about the work of others, usually involving both positive and negative comments, in a friendly manner rather than an oppositional one.