Which of the Following Statements About the Term of a Bond

question 6

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 commission 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:

Active Listening

The practice of paying full attention to speakers, understanding their message, and responding thoughtfully, essential in effective communication.

Jewelry

Decorative items worn for personal adornment, such as rings, necklaces, and bracelets, often made from precious metals and stones.

RAM

Random Access Memory, a form of computer memory that can be accessed randomly and is used for storing operating system, application programs, and currently processed data.

Intermittent

Intermittent refers to events or processes that are not continuous but occur at irregular intervals.