The Ajax Corporation Issues Bonds That Pay a Minimum of 6

question 4

Multiple Choice

The Ajax Corporation issues bonds that pay a minimum of 6% interest but that can pay more if corporate earnings reach certain specified levels. The holder of the bond may exchange it for stock of the corporation. This bond would be a:

• A) callable income bond.
• B) convertible participating bond.
• C) convertible unsecured bond.
• D) convertible secured bond.

---

Definitions:

Social Behavior

Actions within a society that are carried out by individuals and are influenced by the presence and behavior of others.

Revolution

The overthrow of a state or the total transformation of central state institutions.

Social Movement

A group that acts with some continuity and organization to promote or resist social change in society.

Demographic Processes

The dynamic changes in population size and structure, influenced by birth rates, death rates, immigration, and emigration.