Julie Owns a Bond with a $1000 Par Value

question 11

Multiple Choice

Julie owns a bond with a $1000 par value. If she decides to sell her bond on the secondary market before the maturity date, what might be the result?

• A) She could receive more or less than $1000, because the market price of bonds is free to fluctuate.
• B) She will receive exactly $1000, because that is the guaranteed value of the bond.
• C) She will receive more than $1000, because the bond will pay interest to the buyer, making it an attractive investment.
• D) She will receive less than $1000, because the only time the bond is worth the full par value is at maturity.

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Definitions:

Automated Tolerance-Check

An Automated Tolerance-Check is a digital process for verifying if an object, component, or system falls within specified limits or tolerances.

Preventative Maintenance

Maintenance activities performed regularly on equipment before faults occur, aimed at preventing breakdowns and ensuring efficient operation.

Breakdowns

Unplanned stops in machinery or systems due to failure, requiring maintenance or repairs to return to operational state, similar to the concept of Breakdown Maintenance but emphasizing the event rather than the response.

Preventative Measures

Actions taken to reduce the likelihood of an undesirable event occurring, focusing on risk management and safety protocols.