BADM 710

A bond with a face value of $1,000 that sells for less than $1,000 in the market is called a _____ bond. A) Par B) discount C) Premium D) Zero Coupon E) Floating rate - B) discount The _____ premium is that portion of the bond yield that represents compensation for potential difficulties that might be encountered should the bond holder wish to sell the bond prior to maturity. A) default risk B) taxability C) infaltion D) liquidity E) interest rate risk - D) liquidity All else consta...