Which of the Following Statements About Bond Premiums or Discounts

question 249

Multiple Choice

Which of the following statements about bond premiums or discounts is correct?

• A)A discount on a bond reduces the amount that the issuer has to repay to the lenders.
• B)A premium on a bond increases the interest expense of the loan to the issuer.
• C)A premium on a bond increases the amount that the issuer has to repay to the lenders.
• D)A discount on a bond increases the interest expense of the loan to the issuer.

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Definitions:

Out-group Dynamics

Refers to the social and psychological phenomena associated with individuals or groups perceiving themselves as distinct or separate from another group, often leading to prejudice or rivalry.

High Schools

Educational institutions providing secondary education to adolescents, typically offering grades 9 through 12.

Functionalist

A perspective in sociology and anthropology that interprets society as a structure with interrelated parts designed to meet the biological and social needs of individuals that make up that society.

Conflict-Theory

A sociological perspective that emphasizes the role of power and coercion in producing social order, particularly focusing on the conflicts between different social classes.