If a Corporation Issues Bonds That It Cannot Sell,this Is

question 3

Multiple Choice

If a corporation issues bonds that it cannot sell,this is an indication that

• A)Expectations of future sales are low.
• B)Dividends are too low.
• C)The coupon rate is too low.

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Definitions:

Maturity

The date on which a debt instrument (such as a bond) is due to be repaid in full.

EAR

The Effective Annual Rate; a measure of the annual return on an investment or loan that takes into account the effect of compounding interest.

Credit Cards

Credit cards are financial tools issued by banks or financial institutions, allowing cardholders to borrow funds within a pre-approved credit limit for purchases or cash advances.

Nominal Rate

The interest rate before adjustments for inflation, as opposed to the real rate which is adjusted for inflation.