BADM 710
Capella University
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BADM 710 Test 2 Questions with COMPLETE SOLUTIONS 2022
- Exam (elaborations) • 29 pages • 2022
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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...
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