Asked by Tyrik Lawson on May 12, 2024
Verified
Each of the following is correct regarding bonds except they are
A) a form of interest-bearing notes payable.
B) attractive to many investors.
C) issued by corporations and governmental agencies.
D) sold in large denominations.
Interest-Bearing Notes
Written promises to pay a specified sum of money, plus interest, on a certain date to the holder of the note.
Large Denominations
Refers to currency or securities of a high face value.
- Comprehend the principles of bonds, including their attributes and the distinctions between contractual and market interest rates.
- Distinguish among diverse forms of debt securities such as debenture bonds, mortgages payable, and notes payable.
Verified Answer
TZ
Tianxiang ZhengMay 14, 2024
Final Answer :
D
Explanation :
Bonds can be sold in large denominations, but this is not a universal characteristic of all bonds. Some bonds can be sold in smaller denominations to be more accessible to everyday investors.
Learning Objectives
- Comprehend the principles of bonds, including their attributes and the distinctions between contractual and market interest rates.
- Distinguish among diverse forms of debt securities such as debenture bonds, mortgages payable, and notes payable.