Public Utility Issues Have a Greater Yield Than Other Corporate

question 45

Multiple Choice

Public utility issues have a greater yield than other corporate issues, primarily because:

• A)nuclear utility issues carry an extremely high risk premium.
• B)public utility issues generally have a longer maturity.
• C)investor demand for utility issues is greater than for other issues.
• D)utilities' demands for funds is greater than that of other segments.

---

Definitions:

Repossess

The act of taking back possession of property by a seller or lender from the buyer or borrower, typically due to failure in payment.

Auction

A public sale in which goods or properties are sold to the highest bidder.

Mortgagee

The lender or financial institution that provides a loan secured by real property.

Financial Institution

An organization that provides financial services to its clients or members, including banks, credit unions, insurance companies, and investment firms.