Author Question: Stocks are different from bonds because ________. A) stocks, unlike bonds, are major sources of ... (Read 260 times)

genevieve1028 · **on:** Jul 10, 2018

Stocks are different from bonds because ________.

A) stocks, unlike bonds, are major sources of funds
B) stocks, unlike bonds, represent residual ownership
C) stocks, unlike bonds, give owners legal claims to payments
D) bonds, unlike stocks, represent voting ownership

Question 2

Your company is planning to borrow 1,000,000 on a 5-year, 15, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal?

A) 29.83
B) 57.18
C) 35.02
D) 64.45
E) 72.36

fdliggud · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

Answer: B
Explanation: B) Stocks and bonds are both major sources of funds. Bonds do not represent residual ownership. Bonds, unlike stocks, give owners legal claims to payments. Stocks, unlike bonds, represent voting ownership.

Answer to Question 2

B