When an investor buys a corporate bond, the face value of the bond is

A) a measure of ownership in the corporation.
B) a loan to the corporation.
C) the coupon rate of the bond.
D) a dividend payment on the bond.

Answer: B

Economics

You might also like to view...

If the demand curve for orange juice is expressed as Q = 2000 - 500p, where Q is measured in gallons and p is measured in dollars, then at the price of $3, elasticity equals

A) -0.33. B) -3. C) -9. D) -17.

Economics

Which tool of monetary policy does the Federal Reserve use most often?

a. term auctions b. open-market operations c. changes in reserve requirements d. changes in the discount rate

Economics