Public Utility Issues Have a Greater Yield Than Other Corporate

question 45

Multiple Choice

Public utility issues have a greater yield than other corporate issues, primarily because:

• A)nuclear utility issues carry an extremely high risk premium.
• B)public utility issues generally have a longer maturity.
• C)investor demand for utility issues is greater than for other issues.
• D)utilities' demands for funds is greater than that of other segments.

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Definitions:

Foreign Sovereign Immunities Act

A U.S. law that limits the circumstances under which a foreign sovereign nation (its political subdivisions, agencies, and instrumentalities) can be sued in U.S. courts.

Codified

Organized and arranged into a systematic code or system, often referring to laws and regulations.

European Community

A regional organization that aimed to bring about economic integration among its member states, precursor to the European Union.

Protective Tariff

A tax imposed on imports with the intention of shielding domestic industries from foreign competition by making imported goods more expensive compared to local products.