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Gradebook Emai! Live Doc Sharing Dropbox Journal 13. Long term unsecured bonds t

ID: 2788544 • Letter: G

Question

Gradebook Emai! Live Doc Sharing Dropbox Journal 13. Long term unsecured bonds that are backed only by the general creditworthiness of the issuer are called: (Points : 3) O tombstones callable bonds O convertible bonds O debentures 14. The largest purchasers of capital market securities are: (Points : 3) households corporations governments central banks 15. (1) Callable bonds must have a higher yield than comparable noncallable bonds. (II)Convertible than comparable nonconvertible bonds. (Points : 3) bonds are attractive to bondholders and sell for a higher price I is true; II is false I is false: II is true Both I and II are true Both I and II are false 16. Governments do not issue stocks because: Points they cannot sell ownership claims

Explanation / Answer

Solution: 13. Answer is 4th option Debenture Notes: Long-term unsecured bonds that are backed only by the general creditworthiness of the issuer are called debenture. 14. Answer is 1st option households Notes: The largest purchasers of capital market securities are households. 15. Answer is 3rd option Both I and II are true Notes: Callable bonds must have a higher yield than comparable noncallable bonds is true Convertible bonds are attractive to bondholders and sell for a higher price than comparable nonconvertible bonds is true Please feel free to ask if anything about above solution in comment section of the question.