A Disadvantage of Bonds Is

question 104

Multiple Choice

A disadvantage of bonds is:

• A) Bonds require payment of periodic interest.
• B) Bonds require payment of principal.
• C) Bonds can decrease return on equity.
• D) Bonds may not create financial leverage.
• E) All of these answers are correct.

---

Definitions:

Coverdell Education Savings Account

A tax-advantaged savings account designed to pay educational expenses, including tuition, fees, books, and supplies.

Age of 18

Often considered the age of majority or legal adulthood in many jurisdictions, affecting legal responsibilities and rights.

SIMPLE Plans

Savings Incentive Match Plan for Employees, a type of retirement plan that allows both employee and employer contributions.

Nondiscrimination Rules

Regulations ensuring that benefits, services, or opportunities are provided fairly and without bias to all eligible individuals within certain contexts, such as employment or insurance.