Use the Following Information to Answer the Question(s)below

question 29

Multiple Choice

Use the following information to answer the question(s) below.
-The credit spread on B-rated corporate bonds is:

• A)1.0%.
• B)1.5%.
• C)2.6%.
• D)4.1%.

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Definitions:

Paid Bondholders

The action of disbursing interest or principal payments to individuals or entities that hold a company's or government's bond.

Accrued Interest

The interest on a loan or bond that has accumulated since the principal investment, or since the last interest payment, if there has been one already.

Using Sinking Fund

The practice of setting aside money over time into a separate account to repay debt or replace a major asset in the future, thus avoiding a large lump-sum expense.

Market Value

Market value is the amount for which something can be sold in a given market at a particular time.