Which of the following is true of a zero coupon bond?
A) The bond sells at a premium prior to maturity.
B) The bond makes no coupon payments.
C) The bond has a zero par value.
D) The bond has no value until the year it matures because there are no positive cash flows until
then.
B
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The tendency to pay attention to messages consistent with one's attitudes and beliefs and to ignore messages that are inconsistent with them is referred to as
A. stimulus discrimination. B. selective perception. C. selective exposure. D. selective retention. E. selective comprehension.
Carmen knows that she will not have bonus dollars to reward her high-performing management team this year due to a shortfall in company profits. Furthermore, a companywide hiring and promotion freeze will prohibit her from hiring entry-level workers to allow existing staff to be promoted to higher levels. In response, she has arranged for her management team to attend the annual corporate planning meeting, affording them a unique opportunity to interact with and gain recognition by company executives. She has instituted this nonmonetary reward because
A. according to McClelland, managers need no motivation. B. she wanted her staff to perceive that good performance will be rewarded with a bonus, for example, instrumentality. C. according to Herzberg, motivated workers do not need intrinsic rewards, for example, motivators. D. according to Herzberg, motivated workers do not need extrinsic rewards, for example, hygiene factors. E. nonmonetary rewards can motivate when pay and promotions are scarce.
Discuss when a promissory note will be considered a security including a detailed discussion of the family resemblance test
An investor purchases a put option with a strike price of $100 for $3. This option is considered "in the money" if the underlying is trading:
A. above $100. B. below $100. C. above $103. D. at $100.