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22) A bond whose coupon is less than the prevailing market rate on new issues is called a A) par bond. B) premium bond. C) di

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Answer #1

22. Option C

Explanation: In case of a discount bond, the coupon is less than the prevailing market rate.

23. Option D

Explanation: The buyer of the bond is actually lending money to the bond issuer to earn interest income.

24. Option B

Explanation: Fiat money refers to the paper money made legal by government decree.

25. Option D

Explanation: High-yield bonds are corporate bonds below the rating of BBB.

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