Which of the Following Is a Characteristic of a Bond

question 137

Multiple Choice

Which of the following is a characteristic of a bond?

• A)A bond represents a promise to repay a fixed amount of funds.
• B)The face value or principal plus interest is repaid at a specified period of time.
• C)The length of coupon payments is fixed by the stated maturity period.
• D)All of these are characteristics of bonds.

Appreciate the importance of the cost of capital in investment decisions.

Use profitability index to rank investment projects.

Evaluate the financial attractiveness of an investment considering intangible benefits or salvage value.

Understand the principles and methods of different disciplinary actions including corrective, progressive, and preventive disciplines.

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Definitions:

Fasting Blood Glucose

A measure of the sugar levels in blood after an individual has not eaten for a specific period, usually 8 hours, important for diagnosing diabetes.

Diabetes

A metabolic disorder characterized by high blood sugar levels over a prolonged period, resulting from defects in insulin secretion, insulin action, or both.

American Adults

Individuals who are legally considered adults (over the age of 18) and reside in the United States of America.

Type 2 Diabetes

A chronic condition that affects the way the body processes blood sugar (glucose), characterized by high blood sugar, insulin resistance, and relative lack of insulin.