We Would Expect the Interest Rate on Bond a to Be

question 56

Multiple Choice

We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that

• A)the credit risk associated with Bond A is lower than the credit risk associated with Bond B.
• B)Bond A was issued by the city of Philadelphia and Bond B was issued by Red Hat Corporation.
• C)Bond A has a term of 20 years and Bond B has a term of 2 years.
• D)All of the above are correct.

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Definitions:

Four Ds of Negligence

A legal concept involving duty, dereliction of duty, direct causation, and damages, used to establish the liability in a negligence case.

Damages

Money paid as compensation for violating legal rights.

Genetic Information

The data encoded in an organism's DNA, including gene sequences and their variations, which dictates the inherited traits of the organism.