Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?

• A)When investors' required rate of return equals the bond's coupon rate,then the market value of the bond may be selling at par value.
• B)When investors' required rate of return exceeds the bond's coupon rate,then the market value of the bond will be greater than par value.
• C)When investors' required rate of return is less than the bond's coupon rate,then market value of the bond will be greater than par value.
• D)When investors' required rate of return is less than the bond's coupon rate,then the market value of the bond will be less than par value.

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Definitions:

Satisfied Need

A fulfilled requirement or desire, which no longer motivates behavior once it has been addressed.

Motivator

A person or factor that stimulates someone to act in a certain way to achieve a goal.

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner.

Collaboration

The process of two or more people or organizations working together to complete a task or achieve a goal.