Which of the Following Statements Is True Regarding Investments in Bonds

question 24

Multiple Choice

Which of the following statements is true regarding investments in bonds?

• A)shorter maturities should return more than longer maturities,in general
• B)Treasury bonds should return more than corporate bonds of the same maturity
• C)longer maturities should return more than shorter maturities,in general
• D)lower-rated issues should return less than higher rated issues at maturity.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

Intragroup Transactions

Transactions that occur between entities within the same group of companies, often requiring elimination during the consolidation process.

NCI

NCI, or Non-controlling Interest, represents the portion of equity in a subsidiary not attributable directly or indirectly to the parent company.

Subsidiary Profits

Earnings generated by a subsidiary that contribute to the income and financial standing of its parent company.