The Price of a Bond with No Expiration Date Is

question 22

True/False

The price of a bond with no expiration date is $1,000, and the fixed annual interest payment is $100.If the price of the bond falls to $800, the interest rate to a new buyer of the bond is now 20 percent.

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Definitions:

Trialability

The extent to which an innovation or product can be experimented with on a limited basis before it is fully adopted.

Observability

The degree to which the results of an innovation or change can be seen and understood by others, impacting its acceptance and diffusion.

Intrinsic Motivation

The drive to engage in activities for their own sake and personal rewards, rather than for some external compensation or pressure.

Top Management Support

The assistance and backing provided by senior executives to projects or initiatives, which is critical for their success.