Which of the Following Is a Characteristic of a Bond

question 49

Multiple Choice

Which of the following is a characteristic of a bond?

• A)A bond represents a promise to repay a fixed amount of funds.
• B)The face value or principal plus interest is repaid at a specified period of time.
• C)The length of coupon payments is fixed by the stated maturity period.
• D)All of these are characteristic of bonds.

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Definitions:

Demand Decreases

Occurs when consumers are less willing or able to purchase a product at any given price, leading to a leftward shift in the demand curve.

Shift Left

A decrease in the supply or demand of a product in a market diagram, typically resulting in a lower equilibrium quantity and potentially a higher or lower equilibrium price.

Demand

The quantity of a good or service consumers are willing and able to purchase at various prices.

Normal Good

a good for which demand increases as the income of consumers increases and falls when their income decreases, assuming all other factors are constant.