Aluminum Is an Active Metal, but Does Not Corrode as Iron

question 3

Multiple Choice

Aluminum is an active metal, but does not corrode as iron does because

• A) Al does not react with O₂.
• B) a protective layer of Al₂O₃ forms on the metal surface.
• C) Al is harder to oxidize than is Fe.
• D) the enthalpy of formation of aluminum oxide is negative.
• E) aluminum has a high tensile strength.

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Definitions:

Yields To Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.

Par Value

The face value of a bond or stock as stated on the certificate or instrument, not necessarily its market value.

Mature

Refers to when a bond reaches its expiry date-payback or when a market or company has reached a state of equilibrium with little growth.

Subordinated Debenture

A type of unsecured debt that ranks below other debts and securities in terms of claims on assets or earnings in the event of a liquidation.