Which of the Following Statements Regarding Bonds and Their Terms

question 37

Multiple Choice

Which of the following statements regarding bonds and their terms is FALSE?

• A) Bonds are securities sold by governments and corporations to raise money from investors today in exchange for a promised future payment.
• B) By convention, the coupon rate is expressed as an effective annual rate.
• C) Bonds typically make two types of payments to their holders.
• D) The time remaining until the repayment date is known as the term of the bond.

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Definitions:

High-Maintenance

Requiring a lot of time, attention, or resources.

Meal Part

A segment or course of a meal, such as an appetizer, entrée, or dessert.

Vegetarian

A diet abstaining from the consumption of meat and often other animal products, for health, ethical, or environmental reasons.

Side Dish

A food item that accompanies the main course at a meal, often vegetables, rice, or salads.