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Which one of the following is correct? a. Interest payments on bonds are mandatory b. Dividends on a stock are mandatory C. In case of

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Which one of the following is correct? a. Interest payments on bonds are mandatory b. Dividends on a stock are mandatory C. In case of a bankruptcy, stockholders get paid before bondholders d. A bond is evidence of ownership in a corporation Fill in the blank Which of the following statements about bonds is incorrect? a. For most bonds, the trading is set to be thin. In other words, the days can go by before there is trading on a bond. b. Bond trading is done over the counter c. Bonds are risk-free investments as the interest payments and the payment of par value at maturity are guaranteed by the issuing company, d. Zero-coupon bonds do not make interest payments. Which one of the following statements is incorrect? a. The price of a stock trading in the market (e... AMAZON) arises from interactions of buyers and sellers in the stock market 6. New information about overall economic trends, industry related events, political stability, and investor confidence are all reflected in the trading price of a stock The initial price of a stock (when a company sells shares in the market the first time is set by the listing company and its advisors d. Earnings announcement of a company has no impact on its stock price Fill in the blank Why do stock index funds have a higher rate of return than corporate bonds or savings accounts? a. There are more people investing in a stock index fund b. There is less risk with a stock index fund C. There is more risk with a stock index fund d. More cash is required to invest in a stock index fund

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