When an investor buys a corporate bond
A) the investor becomes part owner of the corporation.
B) the principal of the bond is a loan to the corporation.
C) the interest made on the bond represents the bondholder's limited liability in the company.
D) the face value of the bond is equal to what the investor paid for the bond.
Answer: B
You might also like to view...
Table 13.2ABC Bank Balance SheetAssetsLiabilitiesTotal reserves$80,000Transactions accounts$200,000Loans120,000??Refer to Table 13.2. With total reserves of $80,000 and a required reserve ratio of 25 percent, ABC Bank could support maximum transactions account balances of
A. $2,000,000. B. $50,000. C. $320,000. D. $20,000.
A country will not trade unless
A. It has an absolute advantage. B. Its balance of trade is in a surplus position. C. The production possibilities increase. D. The terms of trade are superior to domestic opportunities.