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Phil Is a Contestant on a Game Show

question 17

Multiple Choice

Phil is a contestant on a game show.At this point in the game,he can either accept $500 or spin a wheel for a chance of winning $100,000.Which type of behavior is he displaying if he spins the wheel?


Definitions:

Bond Discount

The difference between the bond's face value and its selling price when the bond is sold for less than its face value.

Premium on Bonds

The amount by which the price paid for a bond exceeds its face value, typically because the interest rate it pays is higher than the market rate.

Maturity

The date on which a debt or other borrowing is due to be repaid in full, or when an investment reaches its full value.

Bond's Discount

The difference between the face value of a bond and its selling price when sold for less than its face value.

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