A bond tends to pay a high interest rate if it isa. a short-term bond rather than a long-term bond.b. a municipal bond exempt from federal taxation.c. issued by the federal government rather than acorporation.d. issued by a corporation of dubious credit quality

Q: Why are U.S. Treasury bonds considered to be safe? O They are repaid from user fees. O They are…

A: A Treasury Bond is a short- or long-term financial instrument issued by the national government.…

Q: The liability for bond anticipation notes (BANs)     Multiple Choice

A: Answer for the above question is third statement.

Q: Companies pay rating agencies to rate their bonds, and the costs can be substantial. However,…

A: As you have asked multiple questions, we will solve the first question as per policy. Request you to…

Q: Governments are prevented from borrowing unlimited funds through the enforcement of debt limits.…

A: Debt limit refers to the limit on the debt that a government can borrow. It shows the limits of…

Q: Revenue bonds, compared with general obligation bonds, generally A.) Are paid out of property or…

A: Revenue Bonds: Revenue bonds are a type of municipal bond issued by a government agency or entity to…

Q: Explain in detail and with examples why the functioning of mortgage institutions could be considered…

A: Mortgage institutions are the companies that are mainly into the production of mortgage loans, be it…

Q: Identify the incorrect statement. A. Banks that issue bonds increase their equity. B. Companies that…

A: Bonds are debt instruments that entities use to raise capital. When an entity (whether a bank,…

Q: Which of the following specific features and material risks of a bond product should be disclosed…

A: Several disclosure requirements of a bond product prior to or at the time of transaction in Hong…

Q: The effective rate of interest on bonds is the interest rate specified on the bond certificate. is…

A: Introduction: A bond is a form of debt that the bond issuer owes to the bondholders. The common…

Q: Which of the following is false?  A) a treasury note is a liability of the U.S treasury B) A…

A: The U.S. T-bond- Treasury bonds are government debt securities issued by the U.S. federal government…

Q: Which of the following describes a bond's credit risk? O The probability that financially sound…

A: The credit risk of a bond refers to the likelihood that the issuer of the bond will default on its…

Q: If a bond is issued at par between interest dates: Multiple Choice O The cash received by the…

A: Bonds can be explained as debt instruments that are being traded in the financial market to raise…

Q: Securities that are registered at the U.S. Federal level are not subject to U.S. state governments…

A: There are various laws governing securities

Q: Bonds which are collateralized by specific assets in the event the borrowing company defaults on…

A: Bonds are a form of liability for the business. These can be issued for short term or long term.…

Q: 44) Which is the definition of a protective covenant? a) Bonds are repaid at maturity, where…

A: Protective covenants are certain clauses in bond indenture which will be limiting the actions of…

Q: Why do most municipal bonds pay lower interest than riskless Treasury bonds?

A: Municipal as well as Treasury bonds are backed by the government and therefore are less risky. The…

Q: Explain why Basel Rules require a maturity adjustment for corporate loans but not retail loans.

A: Retail loan is the loan which is provided through commercial bank or the certified financial…

Q: Suppose that bond A and bond B are identical municipal issues, except that bond A is a general…

A: A general obligation bond is backed by 'full faith and credit' of the issuing entity. Here there are…

Q: Bonds can be an effective counterbalance in a portfolio heavily invested in stocks. True False

A: Bonds: It is a type of investment wherein the issuer of the bond promises the holder of the bond to…

Q: Bonds that are rated less than investment grade by bond-rating agencies is: a. Sovereign bonds b.…

A: Bond is the fixed income securities which promises the holder future coupon payments.

Q: 1) A corporation may choose to use debt financing because a) it has an income tax advantage. b) it…

A: In case of multiple questions, we are allowed to solve only the first question. In case if you want…

Q: What do municipal bonds typically have a lower interest rate than corporate bonds?

A: Municipal bonds are  less likely to default than corporate bonds.

Q: How do term bonds differ from serial bonds? Which type of bonds have governments been more likely to…

A: Hi, as per the answering guidelines, I cannot refer a source. You can add any which you want and…

Q: Bonds are issued to finance major expansions or to refinance existing debt. A True B False

A: Bonds are commonly issued to raise capital for various purposes like finance major expansions or…

Q: Moody's and Standard and Poor's are agencies that □ a. advise municipal bond issuers on the tax…

A: In the realm of corporate finance, the financial health of a company plays a crucial role in shaping…

Q: Municipal Bonds tax exemption is a characteristic that made this bond attractive to investors in low…

A: Municipal bonds refers to bond that are usually issued by municipal corporations or local…

Q: 38. Bonds issued by corporations and exposed to default risk are classified as A. corporation bonds…

A: A bond is a debt security that represents a loan given by an investor to a borrower, typically a…

Q: 2. Which statement is not correct? a) Municipal bonds tend to have a lower yield than Treasuries b)…

A: Municipal bonds are securities issued by state, county or local government to raise money for…