Which of the Following Are TRUE for Discount Bonds

question 79

Multiple Choice

Which of the following are TRUE for discount bonds?

• A)A discount bond is bought at par.
• B)The purchaser receives the face value of the bond at the maturity date.
• C)U)S. Treasury bonds and notes are examples of discount bonds.
• D)The purchaser receives the par value at maturity plus any capital gains.

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Definitions:

Expected Benefits

Anticipated advantages or improvements resulting from a particular action, investment, or decision.

Implementing Alternative

The process of executing or applying a different option or strategy, typically to solve a problem or improve a situation.

Classical Decision Model

A theoretical framework suggesting that decision-makers have complete information, allowing for optimal choices based on rational analysis.

Complete Information

A situation in decision-making where all individuals have access to all relevant information needed to make an informed decision.