Which of the Following Both Make the Interest Rate on a Bond

question 95

Multiple Choice

Which of the following both make the interest rate on a bond higher than otherwise?

• A)the interest it pays is taxed and it was issued by a financially strong corporation
• B)the interest it pays is taxed and it was issued by a financially weak corporation
• C)the interest it pays is tax exempt and it was issued by a financially strong corporation
• D)the interest it pays is tax exempt and it was issued by a financially weak corporation

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Definitions:

Formal Operational

A stage in Piaget’s theory of cognitive development during which people develop the ability to think about abstract concepts.

Reason Abstractly

The cognitive ability to think about objects, principles, and ideas that are not physically present, often involving complex thought processes.

Social Norms

Implicit rules that govern behavior within a community or group, guiding what is considered acceptable or typical.

Good Behaviors

Actions or conduct that are considered morally right, socially acceptable, or beneficial in a given context.