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:

Non-Economic Damages

Compensation awarded in a lawsuit for losses that do not have a specific dollar value, such as pain and suffering or loss of companionship.

Product Liability

Refers to the legal obligation of sellers or manufacturers to compensate for injury or damage caused by defective or unsafe products.

Design Defect

A flaw in the intended design of a product that makes it unsafe for use or consumption.

Reasonable Alternative Design

A feasible and practical design option that could minimize or eliminate risk or harm, often discussed in the context of product liability.