In General, If We Compare Two Loans or Bonds with the Same

question 62

Multiple Choice

In general, if we compare two loans or bonds with the same loan size and taxability of interest-income, we would expect a higher interest rate on the loan or bond with a

• A)higher risk and longer maturity.
• B)lower risk and longer maturity.
• C)lower risk and shorter maturity.
• D)higher risk and shorter maturity.

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Definitions:

Social Entrepreneurship

A form of entrepreneurship where the primary objective is to address and solve social problems through innovative solutions.

Strategic Philanthropy

The practice of companies aligning their charitable activities with their business goals, creating mutual benefits for both their stakeholders and the community.

Superficial Discounting

Offering discounts that appear significant but have minimal real impact on the overall cost or value.

Sale Price

The final selling price of a product or service after any discounts or promotions are applied.