A

is bought at a price below its face value, and the

maturity date.

value is repaid at the

Coupon bond; discount

Coupon bonds; face

Discount bond; discount

Discount bond; face

The theory of portfolio choices tells us that the quantity demand of an assert $($a$)$

positively related to wealth, $($b$)$ positively related to the expected return on the asset

relative to alternative assets $($c$)$ negatively related to the riskiness of the asset

relative to alternative assets, and $($d$)$ positivity related to the liquidity of the asset

relative to alternative assets.

True

False