If a Bond's Price Is at a Discount to Face

question 88

Multiple Choice

If a bond's price is at a discount to face value,it has a:

• A) yield below its coupon rate of interest.
• B) yield equal to its coupon rate of interest.
• C) yield above its coupon rate.
• D) decreased risk premium.

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Definitions:

Projective Test

A type of personality test in which the respondent interprets ambiguous stimuli, intending to uncover unconscious desires, fears, and struggles.

Objective Test

A test designed to measure an individual's knowledge or proficiency in a particular area without subjective interpretation by the test scorer.

IAT

The Implicit Association Test, a psychological assessment designed to reveal the strength of an individual's automatic association between mental representations of objects or concepts.

TAT

Thematic Apperception Test, a projective psychological test that involves telling stories about ambiguous scenes to uncover underlying motives, feelings, and life experiences.