A Discount Bond Resembles a Simple Loan in That

question 5

Multiple Choice

A discount bond resembles a simple loan in that

• A)the interest on neither is taxable.
• B)the borrower repays in a single payment.
• C)both represent assets to the borrowers who issue them.
• D)both have par values greater than their face values.

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Definitions:

Manic States

Periods of abnormally elevated mood, energy levels, and activity, often associated with bipolar disorder.

Energy

The capacity to do work, manifested in physical (like mechanical, thermal) or chemical forms and convertible from one form to another.

Optimism

A general tendency to expect good outcomes.

Schizophrenia

A serious mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.