Which of the following statements is true?
A. A person who buys a bond always pays the face value for the bond.
B. If a corporation issues a bond and Dennis buys it, Dennis becomes one of the owners of the corporation.
C. A stockholder of Firm X is one of the owners of Firm X.
D. The owner of the bond receives periodic payments equal to its coupon rate times the price he paid for the bond.
Answer: C
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
The intercept in the multiple regression model
A) should be excluded if one explanatory variable has negative values. B) determines the height of the regression line. C) should be excluded because the population regression function does not go through the origin. D) is statistically significant if it is larger than 1.96.
Is your economics textbook a public or private good? If you conclude that it is a private good, why do we have copyright laws?
Which economist made the following statement: "Every major contraction in the U.S. economy has either been created or greatly exacerbated by monetary instability. Every major inflation has been caused by monetary expansion."
a. Milton Friedman b. John Maynard Keynes c. Adam Smith d. Paul Samuelson