Which of the Following Statements Is True About Bonds

question 131

Multiple Choice

Which of the following statements is true about bonds?

• A) Buyers 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 inversely related to its price.

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Definitions:

Conditional

A type of logical statement that connects two statements in a cause-and-effect relationship, usually formulated as "if-then."

Biconditional

A logical statement indicating a true conditional statement and its converse are true; often represented by the phrase "if and only if".

Component

A part or element of a larger whole, especially in a mechanical or electronic system.

Equivalent Statements

Statements that are logically identical in their truth values, meaning if one is true, the other is true as well, and vice versa.