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Lacey Buys a Bond Issued by XYZ Corporation

Question 17

Multiple Choice

Lacey buys a bond issued by XYZ Corporation. XYZ Corporation uses the funds from the sale of its bonds to build a new factory. Which of the following statements is correct?


A) From what you learned in Chapter 12, Lacey is investing while XYZ Corporation is not.
B) From what you learned in Chapter 12, neither Lacey nor XYZ Corporation is investing.
C) From what you learned in Chapter 12, both Lacey and XYZ Corporation are investing.
D) From what you learned in Chapter 12, XYZ Corporation is investing while Lacey is not.

Correct Answer:

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