Term insurance provided to a designated group of people with a common bond is called

A) decreasing term insurance.
B) group term insurance.
C) whole life insurance.
D) universal life insurance.

Answer: B

Business

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With ________ bonds a firm can choose to pay back the investor at a pre-specified date prior to the maturity date, usually at a pre-specified price above the face value, representing a premium to the bondholder

A) callable B) convertible C) variable rate D) premium

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Under conditions of perfect capital markets, M&M suggest that the average cost of capital for the firm will increase with the addition of debt

Indicate whether the statement is true or false

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