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2B CHAPTER 3

DEBT SECURITIES IS FOR FIXED MATURITY AND EQUITY IS FOR PERPETUITY
True
False
COUPON RATE OF BOND IS NOT INDICATOR FOR RETURNS.
True
False
ZERO COUPON BONDS ARE ISSUED AT PREMIUM
True
False
FLOATING RATE BONDS COUPON ARE RESETED EVERY SIX MONTHS
True
False
FLOATING RATE BONDS ARE ALSO KNOWN AS VARIABLE BOND & ADJUSTABLE BONDS
True
False
CREDIT RATING IS FIXED AND ITS DOES NOT CHANGE
True
False
COMMERCIAL PAPER IS MONEY MARKET INSTRUMENT
True
False
LONG TERM BOND WHICH IS DUE TO MATURE IN 365 DAYS IS MONEY MARKET INSTRUMENT
True
False
A BOND WITH HIGHER CREDIT RATING WILL PAY HIGHER INTEREST RATE
True
False
COUPON MEANS EXPENSE INCURRED ON BONDS
True
False
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