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Ashleigh Is Looking for an Investment That Will Pay a Little

Question 306

Multiple Choice

Ashleigh is looking for an investment that will pay a little better than what she can get from a government bond.You suggest that she consider a new issue of debenture bonds by Very Vegetarian that pay 8.5% annually and mature in 2025.A debenture bond:


A) will provide her with added security because it is backed by collateral.
B) is legally not callable,so she will not have to worry about having to look for another investment any time soon.
C) pays the holder interest only one time each year.
D) is an unsecured corporate bond that pays a higher interest rate because the investor is taking more risk.

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