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

question 35

Multiple Choice

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

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

---

Definitions:

Relevant Range

The span of operations where the presuppositions regarding variable and fixed cost dynamics remain applicable.

Sunk Cost

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Indirect Cost

Expenses not directly tied to the production of goods or services, such as administration, rent, and utilities.