Which of the Following Statements Regarding Bonds and Their Terms

question 41

Multiple Choice

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

• A) The bond certificate typically specifies that the coupons will be paid periodically until the maturity date of the bond.
• B) The bond certificate indicates the amounts and dates of all payments to be made.
• C) The only cash payments the investor will receive from a zero-coupon bond are the interest payments that are paid up until the maturity date.
• D) The face value of a bond is repaid at maturity.

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Definitions:

Public Ownership

Ownership of assets by the government or a government entity, rather than by private individuals or organizations.

Laissez-faire

An economic system in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, and tariffs.

Capitalist Economy

An economic system where private individuals and business owners control the production, distribution, and exchange of goods and services, typically driven by profit motives.

Central Planning

An economic system where all major production, investment, and allocation decisions are made by the government or a central authority.