Corporate Bonds Are Not as Liquid as Government Bonds Because

question 36

Multiple Choice

Corporate bonds are not as liquid as government bonds because

• A) fewer bonds for any one corporation are traded, making them more costly to sell.
• B) the corporate bond rating must be calculated each time they are traded.
• C) corporate bonds are not callable.
• D) all of the above.
• E) only A and B of the above.

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Definitions:

Decline

A decrease in the importance, quantity, or intensity of something.

Economically Equivalent

Economically equivalent means having the same financial value or cost, despite possibly differing in form or method.

Missing Value

An absent or unrecorded piece of data in a dataset or equation.

Scheduled Payments

Regular fixed payments made over a period according to a repayment plan, typically for loans or mortgages.