When Bonds Are Sold for Less Than the Par Amount

question 111

Multiple Choice

When bonds are sold for less than the par amount, this means that the

• A)maturity value will be less than the par amount.
• B)maturity value will be greater than the par amount.
• C)bonds are sold at a premium.
• D)stated rate of interest is less than the yield rate of interest.

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Definitions:

Unconscious

In Freud’s topographic model, the part of personality that contains material that cannot easily be brought into awareness.

Implicit Punishments

Penalties for undesirable behavior that are not directly expressed or are implied, affecting behavior modification subtly.

Defense Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Psychoanalysis

A therapeutic approach and theory of personality development that focuses on unconscious motives and conflicts, developed by Sigmund Freud.