The Yields Offered on Newly Issued Bonds Denominated in Dollars

question 31

Multiple Choice

The yields offered on newly issued bonds denominated in dollars have:

• A) consistently increased over the last 10 years.
• B) consistently decreased over the last 10 years.
• C) remained stable.
• D) none of the above

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Definitions:

Direct Method

A cash flow statement presentation method that shows actual cash flows from operating activities, detailing specific sources and uses of cash, as opposed to the indirect method which adjusts net income for non-cash transactions.

Dividends

Regular payments made by a corporation to its shareholders out of its profits or reserves.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of an entity.

Marketable Securities

Financial instruments that are easily convertible into cash and are therefore considered very liquid.