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A Corporate Bond Is Not as Liquid as Cash Because

Question 89

Multiple Choice

A corporate bond is not as liquid as cash because the bond


A) cannot be converted to spendable dollars either until it matures or is sold to another investor.
B) can be exchanged only for the goods or services produced by the company that issued the bond.
C) must be exchanged for a stock certificate before it can be converted to spendable funds.
D) represents an exchange for gold only.

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