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:

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Income Statement

A financial document summarizing a company's revenues, expenses, and profit over a specific period, reflecting its operational performance.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholder equity at a specific point in time.

Statement Of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down into operating, investing, and financing activities.