Which of the Following Statements About the Term of a Bond

question 35

Multiple Choice

Which of the following statements about the term of a bond is correct?

• A)Term refers to the various characteristics of a bond,including its interest rate and tax treatment.
• B)The term of a bond is determined entirely by its credit risk.
• C)The term of a bond is determined entirely by how much sales charge the buyer of the bond pays when he or she purchases the bond.
• D)Interest rates on long-term bonds are usually higher than interest rates on short-term bonds.

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Definitions:

Bounding

A term often used to describe a strong or forceful pulse indicating an increase in cardiac output or excitement.

Absent

Not present in a specified place at a given time; lacking.

Arterial Ischemic Ulcer

A type of ulcer caused by poor blood flow to the arteries, typically resulting in tissue damage and sometimes seen in limbs.

Deep Vein Thrombophlebitis

A serious condition involving the formation of a blood clot within a deep vein, typically in the legs, which can lead to inflammation and potential complications if untreated.