A bond tends to pay a high interest rate if it isa. a short-term bond rather than a long-term bond.b. a municipal bond exempt from federal taxation.c. issued by the federal government rather than acorporation.d. issued by a corporation of dubious credit quality

A bond tends to pay a high interest rate if it isa. a short-term bond rather than a long-term bond.b. a municipal bond exempt from federal taxation.c. issued by the federal government rather than acorporation.d. issued by a corporation of dubious credit quality

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2MC: A debenture is ________. A. the interest paid on a bond B. a type of bond that can be sold back to...

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Question

A bond tends to pay a high interest rate if it is
a. a short-term bond rather than a long-term bond.
b. a municipal bond exempt from federal taxation.
c. issued by the federal government rather than a
corporation.
d. issued by a corporation of dubious credit quality

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