Which of the Following Can Cause the Price of a Corporate

question 39

Multiple Choice

Which of the following can cause the price of a corporate bond to fluctuate until the maturity date?

• A)Changes in overall interest rates in the economy
• B)The financial condition of the company issuing the bond
• C)The factors of supply and demand
• D)An upturn or downturn in the economy
• E)All of these

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Definitions:

Child Care

A broad term encompassing the care, education, and supervision of children by someone other than their legal guardians.

Financial Accounting Standards Board

An independent nonprofit organization responsible for establishing financial accounting and reporting standards in the United States.

Pay-As-You-Go

A financing method where expenditures are not financed by borrowing but from current revenues such as taxes.