Which of the Following Are Main Issues of Bonds

question 65

Multiple Choice

Which of the following are main issues of bonds?

• A) U.S. Treasury bonds
• B) corporate bonds
• C) municipal bonds
• D) All of these choices are correct.

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Definitions:

Depreciation Tax Shield

A reduction in taxable income for a business, resulting from the depreciation expense claimed on tangible assets.

Tax Rate

The percentage of income or value that is collected by the government as tax.

MACRS Depreciation

A method of depreciation in the U.S. that allows for a faster write-off of assets under the tax code.

Incremental Annual Cash Flow

The additional cash flow generated by a company from taking on a new project, calculated as the difference between the project's cash inflows and outflows.