Bonds Which Sell at Less Than Face Value Are Priced

question 69

Multiple Choice

Bonds which sell at less than face value are priced at a ________, while bonds which sell at greater than face value sell at a ________.

• A) par; premium
• B) discount; par
• C) discount; premium
• D) coupon; premium

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Definitions:

Net Income

The total profit of a company after accounting for all expenses and taxes; also known as net earnings or net profit.

Cash Receipts

The monetary amounts received by a company during a specific period for goods sold, services provided, or any other business activities.

Bank Loan

A sum of money borrowed from a bank that must be repaid with interest over a predetermined period.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.