What Would Cause a Corporate Bond with a $1,000 Face

question 4

Multiple Choice

What would cause a corporate bond with a $1,000 face value and a fixed interest rate of 7 percent to increase in value?

• A) The bond receives a lower rating by Moody's or Standard & Poor's.
• B) Overall interest rates in the economy increase.
• C) The government places an interest ceiling on corporate bonds.
• D) Overall interest rates in the economy decrease.
• E) The corporation files for protection under the bankruptcy laws.

Understand the various forms of training methods and their applicability to different job scenarios.

Identify key characteristics and differences between apprenticeships, internships, and other on-the-job training programs.

Understand the role and effectiveness of simulation in training programs.

Recognize the importance of behavior modeling in learning and training environments.

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Definitions:

Dividends Payable

A liability account that represents the amount a company owes to its shareholders as declared dividends but has not yet paid out.

Paid-in Capital

Funds raised by a company through the sale of shares to investors, representing the equity capital invested in the business.

Reacquire Stock

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Stock Option Plans

A compensation strategy companies use, offering employees the option to buy company stock at a specific price for a certain period.