Because of their cash flow characteristics bonds are sold, Financial Management

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Because of their cash flow characteristics bonds are sold

1) Because of their cash flow characteristics, __________bonds are sold at an original price that is lower than their face value.

a. Treasury

b. high-coupon

c. zero-coupon

d. Treasury

2) __________ are a prime source of yield differentials between government bonds and corporate bonds.

a. Forward rates

b. Default risk premiums

c. Income tax rates

d. Inflation rates

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Financial Management: Because of their cash flow characteristics bonds are sold

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Financial Management: Because of their cash flow characteristics bonds are sold

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