Bond A is a municipal bond and Bond B is a corporate bond. If you pay a very high tax rate, which bond do you prefer? Select one: a. B b. A c. A=B
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Bond A is a municipal bond and Bond B is a corporate bond. If you pay a very high tax rate, which bond do you prefer?
B
A
A=B
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- A debenture is ________. Group of answer choices A. a bond with assets such as land to back their word that they will pay it back B. the interest paid on a bond C. a type of bond that can be sold back to the issuing company whenever the bondholder wishes D. a bond with only the company's word that they will pay it backIf a bond is backed by the revenue generated from a project, it is called______ Group of answer choices GO bond Revenue bond Green bond tax-supported bondSuppose that bond A and bond B are identical municipal issues, except that bond A is a general obligation bond, and bond B is a revenue bond. Which of the following statements is true? O A. Bond A will have a lower credit risk and a lower yield B. Bond B will have a lower credit risk and a lower yield C. Bond A will have a higher credit risk and a lower yield D. Bond B will have a lower credit risk and a higher yield
- Bond A is a municipal bond and Bond B is a corporate bond. Which bond should have the lower yield to maturity? Select one: a. B b. A c. A=BA debenture is ________. A. the interest paid on a bond B. a type of bond that can be sold back to the issuing company whenever the bondholder wishes C. a bond with only the companys word that they will pay it back D. a bond with assets such as land to back their word that they will pay it backA debenture is ________.A. the interest paid on a bondB. a type of bond that can be sold back to the issuing company whenever the bondholder wishesC. a bond with only the company’s word that they will pay it backD. a bond with assets such as land to back their word that they will pay it back
- Series EE bonds are: Question 5 options: corporate bonds that produce income that is taxed the same as other investment income. corporate bonds that produce income that may be exempt from some taxes. U.S. savings bonds that produce income that is taxed the same as other investment income. U.S. savings bonds that produce income that may be exempt from some taxes.Define each of the following terms:i. Development bond; municipal bond insurance; junk bond; investmentgrade bond1. To calculate a gain or loss on redemption of a bond, you compare a. The market interest rate to the contract rate b. The carrying value value of the bond to the proceeds received from the sale of the bond c. The income for the period d. The proceeds to the unamortized premium or discount 2. If the proceeds are greater than the carrying value, you will have a a. gain with a credit balance b. gain with a debit balance c. loss with a debit balance d. loss with a credit balance
- Which of the following would describe a callable bond? Oa. Borrower has the right to issue more bonds prior to due date of existing bonds. Ob. Borrower has the right to call off the interest payments on the bonds. Oc. Investor has the right to call off the interest payments on the bonds. C. d. Borrower has the right to pay off the bonds prior to due date.Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company. Interest on bonds is tax deductible.Ques 6) What are the two methods of calculating the percentage annual return earned by the owner of the discount bonds? Give formula to calculate both of them. Which one of them is more reliable? Explain.