Simple loans and discount bonds differ from coupon bonds and fixed-payment loans in that
A) interest on simple loans and discount bonds is taxable, while interest on coupon bonds and fixed-payment loans is not.
B) interest on coupon bonds and fixed-payment loans is taxable, while interest on simple loans and discount bonds is not.
C) interest rates on simple loans and discount bonds are generally higher than interest rates on comparable coupon bonds and fixed-payment loans.
D) interest on simple loans and discount bonds is paid in a single payment, while issuers of coupon bonds and fixed-payment loans make multiple payments of interest and principal.
Correct Answer:
Verified
Q12: Debt instruments are also called
A)equities.
B)credit market instruments.
C)prospectuses.
D)units
Q13: Which of the following is NOT true
Q14: Suppose Matt's New Cars issues a one-year
Q15: A discount bond resembles a simple loan
Q16: The amount of funds the borrower receives
Q18: When you place your funds in a
Q19: The total payment to a lender for
Q20: Which of the following is a coupon
Q21: Compounding refers to
A)the calculation of interest rates
Q22: If you deposit $500 in a savings
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents