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Stells [14]
3 years ago
9

QUESTION 5 of 10: True or False: Corporate bonds generate higher rates of return than U.S. Treasury bonds.

Business
1 answer:
sergeinik [125]3 years ago
4 0

Corporate bonds generate higher rates of return than U.S. Treasury bonds.This statement is true

Explanation:

Corporate bonds are the bonds that are issued by the corporation.Whereas the US treasury bonds are issued by the US government.The US treasury bond offer taxation benefit to its purchasers whereas no such benefit is provided by a corporate bond.

Corporate bonds are the bonds that are considered to be risky in comparison to the bonds issued by the government and that is the main reason why they have greater rate of return than then goverment bonds

So we can say that .Corporate bonds generate higher rates of return than U.S. Treasury bonds.This statement is true

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Answer:

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Explanation:

The annual cash inflows associated with the machine can be found by the following expression, where 'r' is the company's discount rate of 12% and 'n' is the useful life of the equipment of 18 years:

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