A Bond with a Face Value of $1,000 That Sells

question 113

Multiple Choice

A bond with a face value of $1,000 that sells for $1,000 in the market is called a _____ bond.

• A)zero coupon
• B)premium
• C)discount
• D)par value
• E)floating rate

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Definitions:

Cash Flow Statement

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how well it manages its cash position.

Stock Investment

The process of buying shares of companies in the hope of making a profit from dividends or the sale of the shares at a higher price in the future.

Capital Acquisitions Ratio

A financial metric used to determine the total capital being used for capital expenditures by a company.

Operating Activities

Activities that relate directly to the business's primary operations, including cash flows from selling goods and providing services, which are part of the company's core business function.