Debt instruments subject their owners to risk from ______ (1)loss of purchasing power (2)higher credit ratings (3) default
A. (1) and (2)
B. (1) and (3)
C. (2) and (3)
D. (1), (2), and (3)
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Which of the following bonds is supported by collateral? ____
A. unsecured bonds
B. income bonds
C. equipment trust certificates
D. debentures
Interest is exempt from federal income taxation for __ _
A. equipment trust certificates
B. zero coupon bonds
C. federal bonds such as savings bonds
D. state of Florida bonds
If a company enters bankruptcy court, bondholders should realize ____
A. subordinated debt is paid off at face value
B. convertible debt is superior because it may be converted into common stock
C. bondholders may lose their investments
D. stockholders have the superior position
The The document stating the terms of a bond is the indenture. ()