Which of the following both make the interest rate on a bond higher than otherwise?

a. the interest it pays is taxed and it was issued by a financially strong corporation
b. the interest it pays is taxed and it was issued by a financially weak corporation
c. the interest it pays is tax exempt and it was issued by a financially strong corporation
d. the interest it pays is tax exempt and it was issued by a financially weak corporation

b

Economics

You might also like to view...

We know that a perfectly competitive firm is a price taker because

A) its MC curve slopes upward. B) its ATC curve is U-shaped. C) its demand curve is horizontal. D) MC and ATC are equal at the profit-maximizing amount of output. E) it has no supply curve.

Economics

Crop lien laws that existed in the South in the late 19th century:

a. allowed country stores to require debtors to repay their debts in cotton. b. led to the under-production of cotton. c. protected sharecroppers from exploitation by banks and other lending institutions. d. redistributed property by providing small farms for freed slaves. e. All of the above.

Economics