A bondholder generally takes more of a risk than a shareholder of a corporation
Indicate whether the statement is true or false
False
You might also like to view...
An electronic funds transfer system ________
A) does not include debit card transactions B) is seldom used by businesses C) transfers cash by electronic communication rather than by paper documents D) uses forms such as checks and deposit tickets to transfer cash
A contract carrier provides:
A) a service available to the general public. B) published rates. C) a scheduled service. D) all of the above E) none of the above
Which of the following statements is CORRECT?
A. Two bonds have the same maturity and the same coupon rate. However, one is callable and the other is not. The difference in prices between the bonds will be greater if the current market interest rate is below the coupon rate than if it is above the coupon rate. B. A callable 10-year, 10% bond should sell at a higher price than an otherwise similar noncallable bond. C. Corporate treasurers dislike issuing callable bonds because these bonds may require the company to raise additional funds earlier than would be true if noncallable bonds with the same maturity were used. D. Two bonds have the same maturity and the same coupon rate. However, one is callable and the other is not. The difference in prices between the bonds will be greater if the current market interest rate is above the coupon rate than if it is below the coupon rate. E. The actual life of a callable bond will always be equal to or less than the actual life of a noncallable bond with the same maturity. Therefore, if the yield curve is upward sloping, the required rate of return will be lower on the callable bond.
Under the Montreal Protocol, trade in chlorofluorocarbons is strictly controlled
Indicate whether the statement is true or false