We Would Expect the Interest Rate on Bond a to Be

question 150

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)Bond A was issued by a financially weak corporation and Bond B was issued by a financially strong corporation.
• B)Bond A was issued by the Exxon Mobil Corporation and Bond B was issued by the state of New York.
• C)Bond A has a term of 20 years and Bond B has a term of 1 year.
• D)All of the above are correct.

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Definitions:

DNA Molecule

The carrier of genetic information in living organisms and viruses, composed of two long strands forming a double helix.

mRNA Molecule

A molecule of RNA that encodes a chemical blueprint for a protein product.

Nucleotide Sequence

The order of nucleotides in a DNA or RNA molecule, determining the genetic information carried by that molecule.

Information Flow

The transfer or movement of information within a system or among various systems.