Which of the Following Statements Is Most Correct

question 46

Multiple Choice

Which of the following statements is most correct?

• A) The expected return on a corporate bond is always less than its promised return when the probability of default is greater than zero.
• B) All else equal, secured debt is considered to be less risky than unsecured debt.
• C) An indenture is a bond that is less risky than a subordinated debenture.
• D) Both a and b are correct.
• E) All of the answers above are correct.

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Definitions:

Flashy

Something that is visually striking or showy, often used to attract attention but may lack substance.

Cluttered

Describes an environment or space filled with a disorderly excess of objects, making it difficult to use or navigate efficiently.

Social Media

Digital platforms that allow users to create content, share experiences, and engage in social networking.

Direct Sales

A business model where products or services are sold directly to customers, bypassing traditional retail channels.