Which of the Following Factors Could Explain Difference in Yields

question 54

Multiple Choice

Which of the following factors could explain difference in yields on bonds with the same time to maturity?

• A) the risk that the issuer will not make future payments
• B) differences in the taxation of the bonds
• C) ease of finding buyers and sellers of a bond
• D) all of the above

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership stakes and sometimes the right to vote on corporate matters.

Social Responsibility

The idea that businesses should contribute to the welfare of society and not be solely focused on maximizing profits.

Stakeholder Responsibility

The obligation of organizations to consider the interests and well-being of all individuals or groups affected by their actions.

Profit Responsibility

An obligation companies bear to generate financial gains for their shareholders, ensuring the organization's economic viability and growth.