All of the Following Are Characteristics of a Bond Except

question 114

Multiple Choice

All of the following are characteristics of a bond except

• A)a bond represents a promise to repay a fixed amount of funds.
• B)the face value is repaid when the bond matures.
• C)the coupon payment is the interest payment on the bond.
• D)bonds generally pay dividends each year.

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Definitions:

Breach of Contract

The violation of a contractual obligation, where one party fails to fulfill their part of the agreement.

Subjective Standards

Criteria based on personal opinions, interpretations, or judgments rather than objective measurements.

Substantially Performs

Refers to a party's fulfillment of their core contractual obligations, even if minor specifics are not completed to the letter.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than paying damages for breach.