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

---

Definitions:

Shared Responsibility Model

A newer approach to safety in the workplace that assumes the best way to reduce accident rates relies on the cooperation of the employer and the employees (who may be represented by a union).

Safety of Members

Measures and practices in place to ensure the physical well-being and health of members within an organization or group.

Compensation Payments

Financial remuneration issued to individuals for loss, injury, or suffering, often related to employment or insurance claims.

Workplace Accident Rates

Statistical measures that indicate the frequency or number of accidents occurring within a workplace over a certain period of time.