Which of the Following Would Both Make the Interest Rate

question 57

Multiple Choice

Which of the following would both make the interest rate on a bond higher than otherwise?

• A)the interest it pays is taxed and it is long term
• B)the interest it pays is taxed and it is short term
• C)the interest it pays is tax exempt and it is long term
• D)the interest it pays is tax exempt and it is short term

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Definitions:

Unemployment

The situation of being without a job despite searching for work, reflecting the inability of an economy to generate enough jobs for its workforce.

Debt Collections

The process of pursuing payments of debts owed by individuals or businesses, typically conducted by collection agencies or creditors.

John Marshall

An influential United States Supreme Court Chief Justice from 1801 to 1835, known for shaping American constitutional law and judicial authority.