All Else Constant,a Bond Will Sell at ________ When the Yield

question 78

Multiple Choice

All else constant,a bond will sell at ________ when the yield to maturity is ________ the coupon rate.

• A)par;less than
• B)a premium;equal to
• C)par;higher than
• D)a discount;higher than
• E)a premium;higher than

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Definitions:

Multiple Products

The strategy or condition of manufacturing or selling a variety of different products, often to diversify risk or meet various consumer demands.

Operating Leverage Factor

A measure showing the degree to which a company can increase operating income by increasing revenue, emphasizing the fixed to variable costs ratio.

Net Profit

Net profit, also known as net income, is the amount of earnings remaining after all expenses, taxes, and costs have been subtracted from total revenues.

Variable Costs

Costs that vary in direct proportion to changes in the level of activity or production volume.