Which of the Following Types of Investors Would Be Most

question 65

Multiple Choice

Which of the following types of investors would be most likely to purchase zero coupon bonds?

• A)Retired individuals seeking income for current consumption
• B)Individuals in high tax brackets
• C)Tax-free institutional investors such as pension funds
• D)Risk-averse individuals anticipating increases in interest rates
• E)Individuals with no interest income

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Definitions:

Marginal Cost

The additional expense incurred from the production of one more unit of a good or service.

Competitive Level

The extent to which companies or products compete within a market, affecting prices, quality, and innovation.

Superstars

Exceptionally talented individuals in a particular field or activity who are widely recognized for their skills.

Committed

Showing a strong dedication or allegiance to a cause, activity, or job.