Which Item Listed Below Does Not Influence the Issue Price

question 46

Multiple Choice

Which item listed below does not influence the issue price (present value) of a bond?

• A) The reason the bond was issued
• B) The dollar amounts to be received
• C) The length of time until the amounts are received
• D) The market rate of interest

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Definitions:

Subsidy

Financial assistance granted by a government or public body to support businesses, reduce the prices of goods and services, or encourage particular economic activities.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Rent-seeking Behavior

Actions by individuals or firms to increase their own wealth without creating new wealth or value, often through manipulating the social or political environment.

Single Payer

A healthcare finance mechanism where a single public or quasi-public agency organizes health care financing, but delivery of care remains largely in private hands.