Which of the Following Both Make the Interest Rate on a Bond

question 95

Multiple Choice

Which of the following both make the interest rate on a bond higher than otherwise?

• A)the interest it pays is taxed and it was issued by a financially strong corporation
• B)the interest it pays is taxed and it was issued by a financially weak corporation
• C)the interest it pays is tax exempt and it was issued by a financially strong corporation
• D)the interest it pays is tax exempt and it was issued by a financially weak corporation

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Definitions:

Break-Even Analysis

A financial calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.

Price Sensitivity

The degree to which the price of a product or service affects consumers' purchasing decisions or demand for the product.

Markup Pricing

A pricing strategy where a fixed percentage is added to the cost of a product to determine its selling price.

Price Sensitivity

The degree to which the price of a product affects consumers' purchasing behaviors, reflecting their responsiveness to price changes.