When a Bond Is Issued at a Price Higher Than

question 45

Multiple Choice

When a bond is issued 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:

Externalities

Economic side effects or by-products that affect an uninvolved third party; can be positive or negative, such as pollution or public parks.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are accessible to all members of society and one person's consumption does not reduce availability to others.

Externalities

Costs or benefits arising from an economic activity that affect third parties who did not choose to incur that cost or benefit.

Economic Outcomes

The results or consequences of particular economic policies, decisions, or activities on the overall economy.