Corporate bonds differ from corporate stock in that
a. only bondholders vote on the board of directors
b. only bondholders can sit on the board of directors
c. bonds carry a stated rate of interest
d. bonds are issued as common and preferred
e. bondholders are considered the owners of the business
C
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The Fed can engage in preemptive strikes against a rise in inflation by ________ the federal funds interest rate; it can act preemptively against negative demand shocks by ________ the federal funds interest rate
A) raising; lowering B) raising; raising C) lowering; lowering D) lowering; raising
Assume one investor bought a 10-year inflation-protected bond with a fixed annual real rate of 1.5 percent and another investor bought a 10-year bond without inflation protection with a nominal annual return of 4.2 percent. If inflation over the 10-year period averaged 2 percent, which investor earned a higher real return?
A. The investor who purchased the bond without inflation protection. B. Neither investor earned a positive real return. C. The investor who purchased the inflation protected bond. D. Both investors earned the same real return.
If all prices in the economy go up from one year to the next, the CPI index, using the previous year as the base would
A. be less than 100. B. be greater than 100. C. not be influenced since quantities have remained unchanged. D. not be determined since enough information is given.
Refer to the information provided in Table 2.1 below to answer the following question(s). Table 2.1?KrystalMarkWriting Poems812Writing TV Commercials24Refer to Table 2.1. For Krystal, the opportunity cost of writing four TV commercials is ________ poems.
A. 2 B. 8 C. 16 D. 32