Bonds are different from stocks because ________
A) bonds promise fixed payments for the length of their maturity
B) bonds give payments only after other owners are paid
C) bonds do not have maturity dates
D) bonds promise growth in earnings
Answer: A
Explanation: A) Bonds give payments before equity owners are paid. Bonds mature while stock have no maturity date. Bond payments are fixed by the coupon payment and do not promise growth in payments.
Business
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