Which of the following is true of debt securities?
A. ?The periodic payment on a debt security is known as dividend.
B. A debt security specifies a particular maturity date.
C. The original amount invested in a referred to as interest.
D. The amount of payment on a debt security depends on the company's profits.
Answer: B
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Which of the following statements is TRUE of the behavior of total variable costs, within the relevant range?
A) They will decrease as production increases. B) They will remain the same as production levels change. C) They will decrease as production decreases. D) They will increase as production decreases.
Profit maximization is the major focus of value engineering
Indicate whether the statement is true or false
The advantage of secured credit is the creditor's right to repossess the collateral
Indicate whether the statement is true or false
Which of the following statements is CORRECT?
A. All else equal, secured debt is more risky than unsecured debt. B. The expected return on a corporate bond must be greater than its promised return if the probability of default is greater than zero. C. All else equal, senior debt has more default risk than subordinated debt. D. A company's bond rating is affected by its financial ratios but not by provisions in its indenture. E. Under Chapter 7 of the Bankruptcy Act, the assets of a firm that declares bankruptcy must be liquidated, and the sale proceeds must be used to pay off claims against it according to the priority of the claims as spelled out in the Act.