Robin Is a Bondholder in Nacron Corporation, a Software Company

question 67

Multiple Choice

Robin is a bondholder in Nacron Corporation, a software company. He receives an interest payment on the bond every year. When the bond reaches maturity, Robin will also receive an additional amount of money. In this case, the money that will be received by Robin when the bond matures is known as the _____.

• A) capital gain
• B) dividend
• C) principal
• D) interest income

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Definitions:

Unintended Inventory Changes

Variations in stock levels that occur when actual sales differ from anticipated sales, not resulting from planned actions by businesses.

Keynesian Models

Economic theories that emphasize the total spending in the economy and its effects on output and inflation, developed by John Maynard Keynes.

Planned Investment

Expenditures that businesses intend to make in the future for new capital assets, such as buildings and machinery, to increase production capabilities.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, deflation, and a drop in global GDP.