A Corporate Bond with a Face Value of $1,000 Is

question 43

Multiple Choice

A corporate bond with a face value of $1,000 is issued at 107.This means that the bond actually sold for:

• A)$107 and the stated interest rate was higher than the market interest rate.
• B)$1,070 and the stated interest rate was higher than the market interest rate.
• C)$107 and the stated interest rate was lower than the market interest rate.
• D)$1,070 and the stated interest rate was lower than the market interest rate.

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Definitions:

Legitimised

Made acceptable, lawful, or officially approved, often in a social, legal, or moral context.

Enshrined

Describes something that is preserved or cherished as if sacred, often in reference to principles, rights, or values embedded within legal or moral codes.

Prejudices

Preconceived opinions that are not based on reason or actual experience, often leading to biased attitudes towards individuals or groups.

Three-Component Attribute Model

A framework proposing that attitudes comprise cognitive, affective, and behavioral components, each contributing to the evaluation of an object or idea.