A bond is
A) a legal claim to a part of a corporation's future profits that includes voting rights.
B) a legal claim to a part of a corporation's future profits that does not include voting rights.
C) a legal claim against a firm, providing a fixed annual coupon payment and a lump-sum payment at maturity.
D) a nonlegal promise to provide an annual payment to the holder when the corporation makes profits.
Answer: C
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A worker's contribution to a firm's revenue is measured directly by the worker's
a. marginal product. b. value of marginal product. c. marginal product multiplied by the worker's wage. d. value of marginal product multiplied by the output price.
The case for government stabilization policy is made more compelling if the
A. self-correcting mechanism works very slowly. B. self-correcting mechanism works too fast. C. value of the multiplier is very small. D. aggregate supply curve is very flat.