Which of the Following Is Not a Nonsensical Headline

question 30

Multiple Choice

Which of the following is not a nonsensical headline?

• A) British perpetuities about to mature.
• B) Disney issues new bonds with term of $1,000 each.
• C) Government bonds currently pay less interest than corporate bonds.
• D) Standard and Poor's judges new junk bond to have very low credit risk.

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Definitions:

Stock Warrants

Financial instruments that give the holder the right to purchase a company's stock at a specified price before the warrant expires.

Exercise Date

The specific date on which an option contract can be executed or acted upon by the holder.

Fixed Compensatory

Relates to a form of compensation or damages that are predetermined and not subject to change.

Memorandum Entry

This refers to a journal entry made in the financial records to note a significant event or transaction that doesn’t involve a direct exchange of cash or value and hence does not affect the financial statements directly.