A Bond with a Face Value of $1,000 That Sells

question 35

Multiple Choice

A bond with a face value of $1,000 that sells for $1,000 in the market is called a ________ bond.

• A)par value
• B)discount
• C)premium
• D)zero coupon
• E)floating rate

---

Definitions:

Market Failure

A situation where the allocation of goods and services is not efficient, often leading to a net social welfare loss.

Business Sector

A segment of the economy that represents the activities of businesses, corporations, and private enterprises that provide goods and services to consumers.

Deng Xiaoping

A Chinese communist leader who initiated significant economic reforms in China from the late 1970s, leading to its market economy transformation.

Civilian Goods

Items produced for use by civilians, rather than for military purposes.