Which of the Following Statements About a Bond That Is

question 106

Multiple Choice

Which of the following statements about a bond that is selling at a discount is correct?

• A)Because the coupon rate remains constant, the market value of the bond also remains constant throughout its life.
• B)The market price of the bond will be greater than the bond's face value.
• C)The market price of the bond will increase and will approach its face value as the maturity date gets closer.
• D)Both the market price of the bond and the interest received will increase as the maturity date nears.
• E)The par value of the bond will increase with every increase in the market price of the bond until the maturity date is reached.

---

Definitions:

Productivity

The measure of efficiency in converting inputs into useful outputs, often evaluated in terms of the amount of output produced per unit of input.

Reward Allocation Norms

Guidelines or principles that dictate how rewards such as recognition, salary increases, or promotions are distributed within an organization.

Social Loafing

The tendency of individuals to exert less effort on a task when working in a group than when working alone.

Motivation

The reason or reasons one has for acting or behaving in a particular way; the general desire or willingness of someone to do something.