The Market Value of a Debenture Is the Amount at Which

question 2

Multiple Choice

The market value of a debenture is the amount at which it would be exchanged in an active, liquid market (its fair value) .When a company raises funds using debentures and the current market interest rate is different to the rate in the debenture deed at issue date, that company normally will receive the:

• A)face amount of the debenture, pay the market rate of interest over the debenture's term and pay the market value of the debenture upon maturity
• B)market value of the debenture, pay the market rate of interest over the debenture's term and pay the face amount of the debenture upon maturity
• C)face amount of the debenture, pay the rate of interest in the deed over the debenture's term and pay the market value of the debenture upon maturity
• D)market value of the debenture, pay the rate of interest in the deed over the debenture's term and pay the face amount of the debenture upon maturity

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Definitions:

Behaviorism

A theoretical perspective focused on observable behaviors and the ways in which they're learned, often emphasizing the role of external stimuli and responses.

Observable Behavior

is any action or conduct of an individual that can be seen or measured, often used in the study of psychology and organizational behavior.

Inner States

Psychological conditions or feelings that exist within an individual, influencing their behavior and perceptions.

James McGregor Burns

A political scientist known for his work on leadership and specifically for introducing the concept of transformational leadership.