The Value of a Bond Is Given by

question 13

Multiple Choice

The value of a bond is given by
I.bond value = asset value - value of call option on assets
II.bond value = value of an equivalent default-free bond + value of put option on assets
III.bond value = value of an equivalent default-free bond + value of put option on the stock
IV.bond value = asset value + value of call option on the stock

• A)I only.
• B)I and II only.
• C)III and IV only.
• D)IV only.

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Definitions:

Herzberg's Two-Factor Theory

A motivation theory which suggests that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction.

Satisfier Factor

Refers to job factors that increase job satisfaction without necessarily diminishing job dissatisfaction when absent, as proposed by Herzberg in his Two-Factor Theory of motivation.

Sense of Achievement

The feeling or satisfaction one experiences upon meeting a goal, completing a task, or accomplishing something of value.

Recognition

The acknowledgment of someone's achievement, effort, or qualities by others.