Which of the Following Statements Is True of a Bond

question 101

Multiple Choice

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

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

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Definitions:

Average Service

The mean level of service quality provided by an organization, gauged over a specific period or across various service instances.

Random Process

A sequence of unpredictable events in which the outcome of any specific event cannot be accurately predicted.

Probability Distribution

A statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

Cumulative Probability

The probability that a random variable takes on a value less than or equal to a specific value, aggregating across all previous probabilities.