Which of the Following Statements Is True About Bonds

question 97

Multiple Choice

Which of the following statements is true about bonds?

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

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Definitions:

Attribution Theory

A social psychology theory focused on how individuals interpret and assign causes to their own and others' behaviors.

Actor-observer Bias

The tendency to attribute one's own actions to external causes while attributing others' actions to internal characteristics.

Self-serving Bias

The common human tendency to attribute positive events to one's own character but attribute negative events to external factors.

Environmental Cause

A factor in the surrounding environment that contributes to the development or outcome of a condition or event.