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Archive for August, 2006

Corporate Bonds Maturity

corporate bonds maturity
Question: A difference between a share of stock in a corporation and a corporate bond is that?

A.the bond owner has voting rights within the corporation whereas the stockholder does not.

B. the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond's maturity date, whereas the stockholder is entitled to a share of future profits.

C. the share of stock is a legal claim while the bond is not.

D. stocks are issued in return for funds that are lent to the corporation.

Answer: B

Bonds: duration and maturity


Corporate Bonds Otc

corporate bonds otc

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