Bond coupon payments represent
A) dividends paid to owners.
B) interest on the amount borrowed.
C) capital gains for tax purposes.
D) payments to preferred shareholders.
B
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Suppose that firms in a monopolistically competitive industry are earning short-run economic profits. In the long run, the demand curve facing each individual firm can be expected to
a. shift to the left and become flatter b. shift to the left and become steeper c. shift to the right and become flatter d. shift to the right and become steeper e. remain constant
At a price of $1.00, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price of $1.20, the coffee shop would be willing to supply 150 cinnamon rolls per day. Using the midpoint method, the price elasticity of supply is about
a. 0.45 b. 0.90 c. 1.11 d. 2.20