Which of the Following Statements Is True About Bonds

question 29

Multiple Choice

Which of the following statements is true about bonds?

• A) Bonds are ownership shares in a firm.
• B) The dollar price and interest rate of a bond have an inverse relationship.
• C) A bond's dollar price is calculated as growth rate.
• D) Bonds can never default.
• E) The dollar price and interest rate of a bond have a positive relationship.

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Definitions:

Two-Party System

A political system dominated by two major parties, often limiting the presence or success of smaller or third parties.

Legislative Chamber

A formal assembly or room where a legislature meets to discuss and make laws.

Majority

The greater part or number; the number of votes, seats, or individuals in a group that is more than half of the total count.

Policy Advocate

An individual or group that actively supports and promotes specific policies or legislation to influence public opinion or decision-making.