The Issuance Price of a Bond Does Not Depend on The

question 242

Multiple Choice

The issuance price of a bond does not depend on the:

• A)face value of the bond.
• B)market rate of interest.
• C)perceived risk associated with the bond.
• D)method used to amortize the discount or premium.

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum quantity of one good that can be produced for every possible quantity of another good produced, given available resources and technology.

Decreasing Opportunity Costs

A situation in which the opportunity costs of resources decrease as more of a good is produced.

Increasing Opportunity Costs

A situation where increasing production of one good requires larger and larger sacrifices in the production of another good due to limited resources.

Unemployment Rate

The ratio of the complete labor pool that is jobless yet is in active pursuit of employment and prepared to work.