If the Required Return Is Less Than the Coupon Rate

question 125

Multiple Choice

If the required return is less than the coupon rate, a bond will sell at ________.

• A) par
• B) a discount
• C) a premium
• D) book value

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Definitions:

Instrumental Learning

Also known as operant conditioning, it is a learning process through which the strength of a behavior is modified by reinforcement or punishment.

Biological Predispositions

Innate tendencies or propensities intrinsic to an individual's biology that may influence behaviors, traits, or disease vulnerabilities.

Learning Association

A process by which two pieces of information, or a behavior and a response, become linked in the mind or behavior of an individual.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior.