Which of the Following Describes a Term Bond

question 153

Multiple Choice

Which of the following describes a term bond?

• A) A bond that repays principal in installments
• B) A bond that gives the bondholder a claim for specific assets if the issuer fails to pay
• C) A bond that matures at one specified time
• D) A bond that is not backed by specific assets

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Definitions:

Market Price

The ongoing rate at which an asset or service is offered for buying or selling in a certain market.

Short Run

A period in economics during which at least one input or resource is fixed, limiting immediate capacity adjustments.

Zero Economic Profit

A condition in which a firm's total revenue equals its total costs, implying normal profit but no excess profit over what is considered normal in the industry.

Long Run

A period in economics where all factors of production and costs are variable, and firms can adjust all inputs as needed.