Which of the Following Is False Concerning Corporate Bonds

question 64

Multiple Choice

Which of the following is false concerning corporate bonds?

• A) Coupon and principal payments are stated in advance when the bond is first issued.
• B) Bonds represent a creditor's claim on the corporation.
• C) Most corporate bonds are callable.
• D) The yield to maturity is constant throughout a bond's life.
• E) Canadian corporate bonds generally have a $1,000 face value.

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Definitions:

Performance Measurements

The evaluation of the effectiveness and efficiency of actions or operations within an organization.

Customer Equity Ratio

A metric that evaluates a company's ability to generate future revenues from its existing customer base compared to the resources expended on acquiring and retaining customers.

Financial Investments

The allocation of resources into financial assets, like stocks or bonds, with the expectation of generating income or profit.

Financial Return

The profit or loss resulting from an investment, expressed as a percentage of the investment’s initial cost.