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Select the bond type that corresponds to each of the given descriptions. ( Note: There is only one possible answer for each description. ) Descriptions
Select the bond type that corresponds to each of the given descriptions. Note: There is only one possible answer for each description.
Descriptions
Bond Types
The management of Edinborough Exports Inc. EEI is acquiring International Imports Inc. and will
issue these highrisk bonds to finance the deal. Because the issuance of this additional debt will
increase EEl's default risk, the new bonds will carry a higher interest rate.
Bell County wants to renovate a local municipal park. The county commissioners think that the
renovations will help attract more people to its facilities including an aquatic center and tennis courts
There are fees attached to using these facilities, and the commission is confident that the additional
revenue will more than justify these improvements. The county wants to issue bonds to pay for the
renovations, and the bondholders will be paid from the cash flow generated by the park.
Nick is considering an investment in bonds that are not secured with any real property.
Your broker, Rosa, 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.
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