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:

Company Books Adjustment

involves modifying entries in a company's accounting records to correct discrepancies or allocate expenses and revenues to the correct period.

Debit Memos

Notices sent to account holders indicating a decrease in their account balance, typically due to corrections or adjustments for services or goods.

Credit Memos

Documents issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under previous transactions.

Bank Account Balance

The amount of money held in a bank account at any given moment.