If a $10,000 Face-Value Discount Bond Maturing in One Year

question 40

Multiple Choice

If a $10,000 face-value discount bond maturing in one year is selling for $5,000,then its yield to maturity is

• A)5 percent.
• B)10 percent.
• C)50 percent.
• D)100 percent.

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Definitions:

Projecting

The psychological defense mechanism of attributing one's own attitudes, feelings, or desires to someone or something else.

Preexisting Expectations

Anticipations or beliefs about something that exist before any new information or experiences.

ABC's of Behavior

An analysis framework for understanding behavior, consisting of antecedents, behaviors, and consequences.

Vicarious Learning

The process of learning by observing the actions and outcomes of others' behaviors, rather than through direct experience.