When a Bond Is Selling for More Than Its Face

question 66

Multiple Choice

When a bond is selling for more than its face value, it is said to be selling at a:

• A)discount.
• B)premium.
• C)commission.
• D)conservative value.
• E)prospectus value.

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Definitions:

Negative Reinforcers

In behavioral psychology, negative reinforcement is a process where an undesirable or harmful stimulus is removed after a particular behavior is exhibited, increasing the likelihood of that behavior being repeated in the future.

Extinction

In behavioral psychology, the process through which a conditioned response decreases or disappears as a result of repeated exposure without reinforcement.

Reinforcement

In psychology, a process by which a certain stimulus or action encourages a particular behaviour to occur again.

Punishment

The imposition of a penalty as retribution for an offense or undesirable behavior.