Which of the Following Is True of Fixed-Rate Bonds

question 100

Multiple Choice

Which of the following is true of fixed-rate bonds?

• A) Returns from fixed-rate bonds are dependent on the profitability of the issuing company.
• B) Investors get back the face value of the bond at maturity of fixed-rate bonds.
• C) Fixed-rate bonds issue cash payoffs only at maturity of fixed-rate bonds.
• D) Investors get a share of the company's profit when using fixed-rate bonds.

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Definitions:

Preexisting Duty

Preexisting Duty is a legal principle stating that an action or service required by an existing contract cannot serve as consideration for a new contract.

Promissory Estoppel

A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.

Promisor

An individual or entity that makes a promise to perform an act or fulfill an obligation as specified in a contract.

Obtained

Acquired or secured something, typically through purchase, request, or effort.