Bonds

  1. A) Which of these statements is false? Bonds are always less risky than stocks. The bond market is larger than the stock market. Some bonds offer high potential for rewards and, consequently, higher risk. Bonds are more important capital sources than stocks for companies and governments.

B) A Treasury bill with face value $121,000 and maturity 4 months sells for $113,000.

a. What would be the rate quoted on this bill on a discount basis?

b. What would be its effective annual interest rate? (Round your answer to 2 decimal place.)

True FalseOver the long run, gaining only an extra percent or two on an investmentmakes little difference in the amount of earnings generated

A.What are the elements of financial statements ?

B. Select the best choice to complete each sentence or answer each question below.

C. Which of the following equations is correct ?

A .total assets — liabilities = capital — profit

B. total assets — liabilities = capital + profit

C .total assets + profit = capital + liabilities

D. total assets + liabilities = capital — profit

Solution:

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