When a Bond Is Sold at a Price Higher Than

question 61

Multiple Choice

When a bond is sold at a price higher than the face value, the difference is known as a:

• A)premium.
• B)discount.
• C)maturity value.
• D)face value.

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Definitions:

Behavioral Science

The study of human and animal behavior through observation and empirical analysis, encompassing fields such as psychology, sociology, and anthropology.

Economic Analysis

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective.

Poverty

The state of being extremely poor, where individuals or communities lack the financial resources to meet basic living needs.

Marginal Cost

The price of generating one more unit of a product or service.