Many Investors May Be Drawn to Bonds with Capital Gains

question 48

Multiple Choice

Many investors may be drawn to bonds with capital gains only because:

• A)no taxation on capital gains.
• B)high coupon payments.
• C)long periods until maturity.
• D)reduced taxation on capital gains.

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Definitions:

Motivator

A factor that stimulates an individual to act in a certain way or pursue a particular goal, often leading to enhanced performance or behavior.

Restriction of Productivity

Limitations or constraints that decrease the efficiency or output of a process, system, or individual's work.

Piece Rate Pay

A compensation system where employees are paid based on the amount of work they complete rather than the hours worked.

Hourly Wage

Compensation paid to an employee based on the number of hours worked.