Which of the Following Is Not a Nonsensical Headline

question 144

Multiple Choice

Which of the following is not a nonsensical headline?

• A)British perpetuities about to mature.
• B)Disney issues new bonds with term of 7 percent.
• C)Corporate bonds currently pay higher interest rates than government bonds.
• D)Standard and Poor's judges new junk bond to have very low credit risk.

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Definitions:

Future Value

The value of a current asset at a specified future date, based on an expected rate of growth or return.

Annuity Due

An annuity for which the payment is due immediately at the beginning of each period, rather than at the end.

Ordinary Annuities

Identical financial amounts distributed at the termination of back-to-back periods, within a set period.

Annuities Due

An annuity for which the payment is due at the beginning of each period instead of at the end, often used in lease agreements and insurance premiums.