If a Bond Is Priced at Par Value, Then

question 91

Multiple Choice

If a bond is priced at par value, then:

• A)It has a very low level of default risk
• B)Its coupon rate equals its yield to maturity
• C)It must be a zero-coupon bond
• D)The bond is quite close to maturity

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Definitions:

Clean Water Act

A U.S. federal law aimed at regulating the discharge of pollutants into the nation's surface waters, including lakes, rivers, streams, and coastal areas.

Federal Government

The national government of a federation, which holds the authority to govern the entire country, distinct from state or local governments within the federation.

State Government

The governing body of a state in a federal system, responsible for local legislation, administration, and execution of state laws.

Swimming

The act of propelling oneself through water using the limbs, often considered both a recreational activity and a competitive sport.