Which Statement Is True

question 23

Multiple Choice

Which statement is true?

• A)A bond that has a rating of AA is considered to be a junk bond.
• B)A bond will sell at a premium if the prevailing required rate of return is less than the bond's coupon rate.
• C)A zero coupon is a bond that is secured by a lien on real property.
• D)The legal document that describes all of the terms and conditions of a bond issue is called a debenture agreement.

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Definitions:

Investing Activities

Part of the cash flow statement that shows the cash inflows and outflows related to transactions involving the purchase and sale of long-term assets and investments.

Total Current Liabilities

The sum of all liabilities of a company that are due within one fiscal year.

Statement Of Cash Flows

A financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquid assets available for running its operations.