Which of the Following Statements About the Term of a Bond

question 35

Multiple Choice

Which of the following statements about the term of a bond is correct?

• A)Term refers to the various characteristics of a bond,including its interest rate and tax treatment.
• B)The term of a bond is determined entirely by its credit risk.
• C)The term of a bond is determined entirely by how much sales charge the buyer of the bond pays when he or she purchases the bond.
• D)Interest rates on long-term bonds are usually higher than interest rates on short-term bonds.

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Definitions:

Pay Ranges

A set of compensation levels that define the minimum and maximum amounts of pay an organization is willing to offer for specific positions or job categories.

Pay Differentials

The variations in pay for different jobs or skills within a company or in different geographical locations.

Fair Labor Standards Act

United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

Minimum Wage

The lowest legal hourly pay that employers can compensate workers, established by law to ensure a minimum standard of living for employees.