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Can you just check my answers for correctness please? Which of the following is FALSE about corporate bonds: A. By issuing bonds, company can borrow
Can you just check my answers for correctness please?
Which of the following is FALSE about corporate bonds: A. By issuing bonds, company can borrow money at a lower rate than bank loans. B. Bonds offer less credit risk premium than Treasuries C. An advantage of issuing bond is locking in a fixed interest rate for a long time. D. B and Care FALSE. Which of the following statements is FALSE? Municipal Bonds and Treasuries both offer federal tax exemption Revenue Bonds are supported by the taxing power of the issuing state Treasuries are exempted from taxes on interest income and capital gains All are FALSE. Which of the following statement is TRUE about the benefit of holding Bonds: A. High correlation with stock market makes bonds highly desirable for diversification B. Some types of bond help investor preserve purchasing power C. The Central Bank increase interest rate when the economy is weak. D. A and B are correct. When trading volume of a bond increases and thus the trading cost goes down, the liquidity premium charged on this bond? Increased. Decreased. Unchanged. None is correctStep by Step Solution
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