Which of the Following Statements Is Correct with Respect to Bonds

question 140

Multiple Choice

Which of the following statements is correct with respect to bonds?

• A) Nearly all secondary trading of bonds occurs in the over-the-counter market.
• B) Over the years,bonds have become steadily less important as a source of long-term funds for corporations.
• C) From an investor's perspective,debentures are generally a better investment than bearer bonds.
• D) When an investor hears that a bond has a sinking fund,that is a sign that the company is in financial trouble.
• E) All of these statements are correct.

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Definitions:

Testator's Will

The legal document through which a person (the testator) expresses their wishes as to how their property is to be distributed after death.

Attorney-In-Fact

An agent who is given express, written authorization by his principal to do a particular act or series of acts on behalf of the principal.

Express Authorization

Explicit permission granted by one party to another to perform actions or activities on its behalf.

Principal

In agency law, one under whose direction an agent acts and for whose benefit that agent acts.