Which of the Following Is True If Investors Expect Greater

question 3

Multiple Choice

Which of the following is true if investors expect greater future profits from a company?

• A)The demand for the company's bonds decreases.
• B)The price of the company's bonds decreases.
• C)The current yield on the company's bonds decreases.
• D)The par value of the company's bonds decreases.

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Definitions:

Normal Rate Of Return

The average or expected return on investment in a normal market condition, often considered the minimum acceptable compensation for investment risk.

Depreciating Capital

Assets that lose value over time due to wear and tear or obsolescence.

Normal Rate Of Return

The average or expected return on an investment or project, often considered the minimum acceptable return given the risk involved.

Rental Car Industry

A sector of the transportation industry that offers vehicles for hire on a short term basis, typically ranging from a few hours to several weeks.