Which of the Following Is Correct When a Bond Investor's

question 67

Multiple Choice

Which of the following is correct when a bond investor's rate of return for a particular period equals the bond's coupon rate?

• A) The bond increased in price during the period.
• B) The bond decreased in price during the period.
• C) The coupon payment increased during the period.
• D) The bond price remained unchanged during the period.

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Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.

LLC

Limited Liability Company; a business structure allowing owners to benefit from the advantages of both the corporation and partnership forms of business.

General Partner's Liability

describes the legal responsibility of general partners in a partnership to bear unlimited personal liability for the debts and obligations of the partnership.

Limited Partnership

A business arrangement with at least one general partner managing the business and responsible for its debts, and one or more limited partners whose liability is restricted to their investment.