A Bond with Both a Face Value and a Market

question 23

Multiple Choice

A bond with both a face value and a market value of $1,000 is called a ________ bond.

• A)par value
• B)premium
• C)discount
• D)zero coupon
• E)floating rate

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Definitions:

Inductive Reactance

The opposition an inductor provides to alternating current, directly proportional to the frequency of the current.

Pure Inductive

Refers to a circuit element or circuit that purely has inductance without any resistance, ideally opposing changes in current by generating a magnetic field.

Current

The rate of flow of electrons.

Coil

A component that produces a magnetic field when electric current flows through it.