Which of the Following Is Not Common to All Investments

question 277

Multiple Choice

Which of the following is not common to all investments?

• A) Investors are required to pay some price to acquire them.
• B) Owners are given the opportunity to receive future payments.
• C) Future payments are typically risky.
• D) The investment pays a positive rate of interest.

---

Definitions:

Semiannual Interest

Interest that is calculated and paid twice a year, often associated with bonds or loans.

Effective Rate

The actual interest rate that a borrower pays or earns, taking into account the compounding of interest.

Contract Rate

The pre-agreed interest rate specified in a financial contract or loan agreement.

Bond Premium

The additional amount over the face value for which a bond is sold, representing the difference between its selling price and its face value.