Assuming There Is No Default Risk,both a Premium Bond and a Discount

question 6

Multiple Choice

Assuming there is no default risk,both a premium bond and a discount bond must share which one of the following characteristics?

• A) market price less than a par value bond
• B) yield-to-maturity less than the coupon rate
• C) maturity value equal to a par value bond
• D) current yield equal to that of a par value bond
• E) coupon rate exceeding the yield-to-maturity

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Definitions:

Standardized Intelligence Test

A psychometric test designed to measure intelligence through a series of tasks, adjusted for age and systematically standardized.

Adaptive Functioning

Refers to an individual's ability to perform daily tasks, manage their responsibilities, and adapt to changes in their environment effectively.

Intelligence

The capacity for learning, understanding, solving problems, and adapting to new situations.

Genetic Factors

Elements within an organism's genes that influence its traits, characteristics, and susceptibility to certain diseases.