The Excess of a Bond's Issue Price Over Its Face

question 151

Multiple Choice

The excess of a bond's issue price over its face value is known as the

• A)discount.
• B)effective interest amount.
• C)coupon interest amount.
• D)premium.
• E)contingent liability.

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Definitions:

Poor Planning

Inadequate preparation or foresight, often leading to failures or suboptimal outcomes in projects or activities.

Unmotivated Owners

Refers to individuals who possess ownership in a business but lack interest, enthusiasm, or the drive to actively engage, lead, or improve the venture.

Government Loans

Financial sums lent to individuals or entities by government bodies, often with lower interest rates and longer repayment terms than private loans.

Government Purchasing Programs

Initiatives or schemes implemented by the government to buy or procure goods and services, often to support domestic producers or fulfill public service mandates.