Which of the Following Statements Is True About Bonds

question 148

Multiple Choice

Which of the following statements is true about bonds?

• A)Buyers of newly issued bonds are borrowers.
• B)When the government and large corporations want to borrow money they buy bonds.
• C)A bond owners must hold a bond until it matures.
• D)The interest rate on a bond is inversely related to its price.

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Definitions:

Adjustments Column

A column in accounting ledgers or spreadsheets used for recording adjustments to initial entries for correct financial representation.

Supplies Used

Items consumed during the normal course of business operations, recognized as an expense as they are used.

Work Sheet

An internal document used by accountants to prepare financial statements, gather and adjust entries.

Balance Sheet Columns

Sections in a balance sheet presenting assets, liabilities, and shareholders' equity at a specific point in time.