A Bond That Is Bought at a Price Below Its

question 45

Multiple Choice

A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called a

• A)simple loan.
• B)fixed-payment loan.
• C)coupon bond.
• D)discount bond.

---

Definitions:

Elastic Portion

A segment of the demand curve where a change in price leads to a more than proportional change in quantity demanded, indicating high price sensitivity.

Price Inelastic

Describes a situation where the demand for a good or service is relatively unresponsive to changes in price.

Same Direction

In the context of relationships or trends, indicates movement or change that is parallel or congruent between two or more variables or entities.

Price Elastic

A term related to price elasticity, which measures the responsiveness of the quantity demanded of a good or service to a change in its price.