If an Investment Advisor Was Recommending a Bond, Which of the Following

question 34

Multiple Choice

If an investment advisor was recommending a bond, which of the following would be the least attractive purchase?

• A) a 5-year bond with a 9% coupon rate selling at $1,050
• B) a 10-year bond with a 9% coupon rate selling at $1,000
• C) a 10-year bond with a 9% coupon rate selling at $1,050
• D) a 5-year bond with a 9.5% coupon rate selling at $1,025

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Definitions:

Prime

A condition of being in the best stage or highest quality, often used in relation to time or physical condition.

Avoidance Motivation

Worrying about the negative consequences of failure.

Safety And Security

Fundamental needs referring to the protection from harm and assurance of physiological and psychological wellbeing.

Humanistic Personality

A psychological perspective that emphasizes individual growth, self-actualization, and the concept of the self, viewing individuals as inherently good with potential for personal development.