Bonds with ________ Tend to Have Lower Interest Rates Than

question 31

Multiple Choice

Bonds with ________ tend to have lower interest rates than bonds with ________.

• A) high liquidity; low liquidity
• B) high default risk; low default risk
• C) longer maturity; shorter maturity
• D) high tax burdens on their interest; low tax burdens on their interest

---

Definitions:

Cash Flow

The cumulative sum of funds moving in and out of a company, particularly influencing its liquid assets.

Operating Activities

Activities related directly to the business's primary operations, such as selling products or services, and reflected in its cash flow statement.

Accounts Receivable

Financial obligations of customers towards a company for received goods or services yet to be paid.

Debit Balance

The amount that remains in a financial account when the total debits exceed the total credits, often indicative of expenses or assets.