Which of the Following Constitute Default on a Bond

question 164

Multiple Choice

Which of the following constitute default on a bond?

• A) payment of par value
• B) payment of coupon
• C) violation of the indenture
• D) merger with another company

---

Definitions:

Income Effect

The change in an individual's consumption choices resulting from a change in real income, due to changes in price.

Optimal Consumption Bundle

The mix of products and services that optimizes a buyer's satisfaction within their spending limit.

Cappuccino

A coffee drink made with espresso, hot milk, and steamed milk foam, often served with a sprinkle of cocoa powder or cinnamon on top.

Income

The total amount of money received by an individual or group from various sources, typically used for consumption, savings, and investing.