Which of the following are generally true of all bonds? A. A fall in interest rates results in capital losses for bonds whose t
erms to maturity are longer than the holding period. B. Prices and returns for shortminusterm bonds are more volatile than those for longer term bonds. C. Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise. D. The longer a bond's maturity, the greater is the rate of return that occurs as a result of the increase in the interest rate.
Answer: Option <u>" C. Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise. "</u> is generally true of all bonds.
Explanation: The negotiation of bonds in the open market can lead to a negative return on the bonds if the price of the bonds is negotiated with a sufficient premium. Remember that bond prices change inversely with the yield of a bond, the higher the price of a bond, the lower the yield. At some point, the price of a bond may increase enough to imply a negative return for the buyer.
<span>Below is the flexible budgets
for the company at sales volumes of 14,000 and 16,000 units and classify all
items listed in the fixed budget as variable or fixed.</span>
<span>One analyst indicates that he has studied several of amc's competitors and found that they share a set of critical and core attributes. They included the following attributes rights or shareholders and other core stakeholders are clearly delineated.</span>
