2013年10月21日星期一

True or False? Need some help with these business financial questions please!?

  • income bond
  • high income bonds
  • best bond funds
The document stating the terms of a bond is the indenture. (T)

The highest credit rating is triple A. (T)

Equipment trust certificates issued by a firm are safer than its debentures. (T)

Income bonds are the safest bonds issued by a firm. (F)

A periodic payment to retire a debt is illustrative of a sinking fund. (T)

Bonds may not be repurchased by the firm prior to maturity. (F)

Many bonds have a call feature, which permits the firm to retire the bonds prior to maturity. (T)

An investor may anticipate that a bond will be called if interest rates have risen. (F)

All debentures are bonds but not all bonds are debentures. (T)

Bonds secured by collateral tend to be safer than other bonds issued by the firm. (F)

Bonds that are in default are given a B rating instead of an A rating. (F)

A firm may retire bonds by purchasing the debt in the secondary markets. (T)

The interest paid by federal government bonds is not subject to federal income taxation. (F)

The interest paid by municipal bonds is not subject to federal income taxation. (T)

Treasury bills are short-term debt issued by the federal government. (T)

Treasury securities are often quoted in terms of yield instead of price. (T)


I am a little confused about the interest paid by municipal bonds is not subject to federal income tax because when I googled it, what was stated was that it wasn't but could be. Not sure what to go with. Thanks for the help!!

True or False? Need some help with these business financial questions please!?

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