What is a bond? Identify and discuss the different characteristics and features bonds may possess.
What will be an ideal response?
A bond is a written promise to pay an amount identified as the par value of the bond
along with interest at a stated contract rate. Bonds can be issued by companies or governments. Bonds are usually issued in denominations of $1,000 or $5,000. Bonds can be secured or unsecured. Secured bonds are backed by collateral or assets of the issuer. Bonds can mature in different ways. Serial bonds mature at different points in time, while term bonds mature at a single date. Registered bonds are payable to a specific bondholder, while bearer or coupon bonds are payable to whoever holds the bonds. Convertible bonds may be exchanged by bondholders for shares of the issuing company's stock. Callable bonds can be retired prior to the maturity date by the issuer.
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Assume that the United States is relatively scarce in labor and relatively abundant in capital. According to the Heckscher-Ohlin theory, which of the following will occur in the United States in the presence of trade?
a. The price of capital will rise and the price of labor will fall. b. The price of capital will fall and the price of labor will rise. c. The price of both capital and labor will fall. d. The price of both capital and labor will rise.
Today's new communication technologies have made writing skills less important than in the past
Indicate whether the statement is true or false
Tia signs a lease that states any change in the zoning law that affects the lease will cause its termination. Union City's zoning board adopts an affecting zoning classification. This adoption satisfies
A. no condition. B. the condition precedent. C. the concurrent condition. D. the condition subsequent.
The definition of an executed contract is an illegal agreement calling for harm to another person for a specified fee or price
Indicate whether the statement is true or false