Which of the Following Statements Is Correct

question 5

Multiple Choice

Which of the following statements is correct?

• A) If a company is retiring bonds for sinking fund purposes it will buy back bonds on the open market when the coupon rate is less than the market interest rate.
• B) A bond sinking fund would be good for investors if interest rates have declined after issuance and the investor's bonds get called.
• C) Mortgage bonds have less default risk than debentures.
• D) Both a and c are correct.
• E) All of the statements above are correct.

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Definitions:

Paid Time-off Benefit

A company policy that allows employees to receive wages while they are not working during holidays, vacations, or other personal reasons.

Holidays and Vacations

Scheduled periods of rest and leisure that employees are entitled to, providing a break from work responsibilities.

Employee Assistance Programs

Services provided by employers to help employees deal with personal problems that might adversely affect their work performance and well-being.

Administering Benefit Packages

The process of managing and delivering employee benefit programs, including health insurance, retirement plans, and other perks.