Which of the following statements is false?
A) The issuer of a bond is a borrower.
B) The person who buys a bond is a lender.
C) Interest earned on corporate bonds is exempt from federal income taxes.
D) The coupon rate on a bond is the percentage of the face value that the bondholder receives annually until the bond matures.
C
You might also like to view...
In the figure above, S is the supply curve and D is the demand curve in the unregulated, competitive market for gasoline in Motorland. The external cost of gasoline is constant at $1.50 per gallon
The unregulated, competitive market for gasoline in Motorland A) produces the efficient quantity of gasoline. B) overproduces by 0.2 million gallons of gasoline a month. C) underproduces by 0.1 million gallons of gasoline a month. D) overproduces by 0.1 million gallons of gasoline a month.
When the central bank increases the monetary base, the purchasing power of previously existing currency ________, and this essentially transfers wealth ________
A) increases; from those who own existing currency to the government B) decreases; from those who own existing currency to the government C) increases; from the government to those who own existing currency D) decreases; from the government to those who own existing currency