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:

Drive Theory

A psychological theory suggesting that motivation is driven by an organism's need to fulfill physiological needs in order to maintain homeostasis.

Gratification

The pleasure, satisfaction, or relief felt when a need, desire, or expectation is fulfilled.

Approach-Approach Conflict

A psychological situation involving the choice between two attractive goals or outcomes, leading to a state of indecision.

Goal Attainment

The process of defining, working towards, and achieving objectives, often used in the context of personal development and professional projects.