Consider the following descriptions of different types of bonds. Then, click the boxes in the right-hand column and choose the bond type that best corresponds to each description. Bond Type Description or Situation The management of Edinborough Exports Inc. (EEI) is acquiring International Imports Inc. and will issue these high-risk bonds to finance the deal. Because the issuance of this additional debt will increase EEI's default risk, the new bonds will carry a higher interest rate. What type of bonds will Edinborough Exports Inc. (EEI) issue? Due to substantial growth in the county's population, the Red Oak Public School District needs to renovate several existing schools and build several new schools and a football stadium. To finance this development program, members of the school board have decided to issue bonds that would be serviced using funds raised by increasing the school taxes paid by households in the district. What type of bond is the school board wanting to issue? Alexander is considering an investment in bonds that are not secured with any real property. What type of bond is Alexander considering investing in? Your broker, Akiko, called yesterday and offered you a new investment opportunity: a corporate bond paying a variable interest rate that fluctuates with changes in the general interest rate level. What type of bond is Akiko selling? Consider the following descriptions of different types of bonds. Then, click the boxes in the right-hand column and choose the bond type that best corresponds to each description. Bond Type Description or Situation The management of Edinborough Exports Inc. (EEI) is acquiring International Imports Inc. and will issue these high-risk bonds to finance the deal. Because the issuance of this additional debt will increase EEI's default risk, the new bonds will carry a higher interest rate. What type of bonds will Edinborough Exports Inc. (EEI) issue? Due to substantial growth in the county's population, the Red Oak Public School District needs to renovate several existing schools and build several new schools and a football stadium. To finance this development program, members of the school board have decided to issue bonds that would be serviced using funds raised by increasing the school taxes paid by households in the district. What type of bond is the school board wanting to issue? Alexander is considering an investment in bonds that are not secured with any real property. What type of bond is Alexander considering investing in? Your broker, Akiko, called yesterday and offered you a new investment opportunity: a corporate bond paying a variable interest rate that fluctuates with changes in the general interest rate level. What type of bond is Akiko selling
