Which of the Following Statements About Financial Markets and Securities

question 125

Multiple Choice

Which of the following statements about financial markets and securities is true?

• A) A bond is a long-term security that promises to make periodic payments called dividends to the firm's residual claimants.
• B) A debt instrument is intermediate term if its maturity is less than one year.
• C) A debt instrument is intermediate term if its maturity is ten years or longer.
• D) The maturity of a debt instrument is the number of years (term) to that instrument's expiration date.

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Definitions:

Cyclohexanol

Cyclohexanol is a six-membered cyclic compound where one hydrogen atom is replaced by a hydroxyl group, primarily used as a precursor to nylon.

Sulfuric Acid

A strong mineral acid with the molecular formula H2SO4, widely used in industry and laboratory settings for its dehydrating, oxidizing, and sulfonating properties.

Cyclopentane

A cycloalkane with the molecular formula C5H10, consisting of a ring of five carbon atoms each connected with two hydrogen atoms, used as a solvent and in organic synthesis.

Cyclopentene

A cyclic hydrocarbon with the molecular formula C5H8, featuring a five-membered ring with one double bond.