Which of the Following Is True Regarding Bonds

question 14

Multiple Choice

Which of the following is true regarding bonds?

• A)​Other things equal, bondholders have greater financial security than stockholders.
• B)​The possibility of a bond's value increasing greatly is limited compared to stocks.
• C)​The legal obligation to bondholders is of higher priority than that of stockholders.
• D)​Higher market interest rates represent a risk to bondholders.
• E)​all of the above

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Definitions:

Unconstitutional

Something that is not in accordance with a political constitution, especially the US Constitution, or with procedural rules.

Brown V. Board

A landmark Supreme Court case in 1954 where it was ruled that racial segregation in public schools was unconstitutional.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction and the ability to rule on constitutional issues.

Racially Segregated Schools

Educational institutions that were divided based on race, a practice declared unconstitutional in the United States in 1954 by Brown v. Board of Education.