All of the Following Are Advantages of Issuing Bonds Rather

question 25

Multiple Choice

All of the following are advantages of issuing bonds rather than stock except

• A)financial leverage.
• B)payment of bond interest is not required
• C)bond interest is tax-deductible.
• D)bondholders do not have voting rights.

---

Definitions:

Nominal Exchange Rate

The rate at which one country's currency can be traded for another country's currency.

Yuan

The currency unit of the People's Republic of China, often used to denote the basic monetary unit.

Real Exchange Rate

The real exchange rate is an economic measure that compares the relative price of domestic goods to foreign goods, adjusted for currency exchange rates.

Net Exports

The net difference between a nation's total exports and its total imports, indicating the trade balance.