Bonds That Mature at More Than One Date with the Result

question 178

Multiple Choice

Bonds that mature at more than one date with the result that the principal amount is repaid over a number of periods are known as:

• A)Registered bonds.
• B)Bearer bonds.
• C)Callable bonds.
• D)Sinking fund bonds.
• E)Serial bonds.

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Definitions:

Required Rate of Return

The minimum annual percentage return an investor expects to earn from an investment, considering its risk level.

Preferred Shares

A type of stock that provides holders with a fixed dividend, which must be paid before dividends are paid to ordinary shareholders.

Floatation Costs

The costs that a company incurs when it issues new securities, including underwriting fees, legal fees, and registration fees.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.