Which of the Following Statements Is TRUE About a Bond

question 74

Multiple Choice

Which of the following statements is TRUE about a bond that is issued at a discount?

• A) It will be sold at par.
• B) Its interest rate is higher than the prevailing market rate.
• C) It will repay principal at less than the face value.
• D) It will be sold for less than the face value.

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Definitions:

Corticotropin

Also known as adrenocorticotropic hormone (ACTH), it is a hormone produced by the anterior pituitary gland that stimulates the adrenal cortex.

Androgen Insensitivity Syndrome

A condition where the body cannot respond properly to male sex hormones, leading to female physical traits despite having male genetic makeup.

Testosterone

Hormone secreted by testes; functions in sperm formation and development of male secondary sex characteristics.

Cellular Receptor

A protein molecule on the surface or inside a cell that binds to specific substances, triggering a response in the cell.