Which Kind of Bond Is a Small but Growing Component

question 24

Multiple Choice

Which kind of bond is a small but growing component of the international bond market and consists of two closely related securities?

• A) international bond
• B) domestic bond
• C) equity-related bond
• D) foreign bond

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Definitions:

Reinvesting Dividends

The process of using dividend payments to purchase more shares of the same stock.

Declaration Date

The date on which a company's board of directors announces its next dividend payment.

Board of Directors

A group of individuals elected by shareholders to oversee the management and major decisions of a corporation.

Dividend Payment

The distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or additional stock.