Which of the Following Is Not a Characteristic of a Bond

question 164

Multiple Choice

Which of the following is not a characteristic of a bond?

• A)its tax treatment
• B)its credit risk
• C)its term
• D)its dividend yield

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Definitions:

Lease Financing

A method of financing where an entity uses leased property or equipment for its operations in exchange for periodic payments.

Taxable Income

The amount of income that is subject to taxation, after all deductions and exemptions are applied.

Pension Plan

A financial program set by an employer to provide retirement income to employees.

Contractual Agreement

A legally binding contract that outlines the terms and conditions between parties.