Which of the Following Statements Is True About Bonds

question 97

Multiple Choice

Which of the following statements is true about bonds?

• A) Sellers of newly issued bonds are borrowers.
• B) When the government and large corporations want to borrow money they buy bonds.
• C) A bond owner must hold a bond until it matures.
• D) The interest rate on a bond is directly related to its price.

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Definitions:

Inputs to Outputs

The process of transforming resources or inputs (such as labor, capital, and materials) into products or services (outputs) in a production system.

R&D

Research and Development; activities undertaken by companies to innovate and develop new products or services.

Immediate Environment

The direct surroundings and conditions in which an organization operates, including factors that have immediate impact on its performance and decision-making processes.

Larger Environment

The broader context or setting in which something exists or occurs, including social, economic, and ecological factors.