A Bond with Face Value $1,000 That Sells for More

question 142

Multiple Choice

A bond with face value $1,000 that sells for more than $1,000 in the market is called a:

• A) Par bond.
• B) Discount bond.
• C) Premium bond.
• D) Zero-coupon bond.
• E) Floating rate bond.

---

Definitions:

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.

Proprietorship

Proprietorship, also known as sole proprietorship, is a business owned and operated by a single individual, where the owner and the business are legally treated as the same.

Taxed

Describes funds or goods that are subjected to taxation by governmental authorities.

Maximize Profits

The process or strategy used by businesses to ensure they achieve the highest possible profit from their operations.