Which of the following statements is true?
A: Interest on bonds is tax deductible.
B: Interest on bonds is not tax deductible.
C: Dividends to stockholders are tax deductible.
D: Bonds do not have to be repaid.
E: Bonds always increase return on equity.
A: Interest on bonds is tax deductible.
B: Interest on bonds is not tax deductible.
C: Dividends to stockholders are tax deductible.
D: Bonds do not have to be repaid.
E: Bonds always increase return on equity.
举一反三
- Which of the following statements about Treasury inflation-indexed bonds is not true?
- If interest rates increase, the prices of bonds and preferred stock increase.
- When the expected inflation rate decreases, the demand for bonds _________, the supply of bonds _________, and the interest rate _________.
- Which of the following are true of coupon bonds?
- According to the market segmentation theory of the term structure,________ A: the interest rate for bonds of one maturity is determined by supply and demand for bonds of that maturity. B: bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time. C: investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope upward. D: all of the above. E: none of the above.