Author Question: The possibility that the issuer of a bond will not pay the contractual interest or principal ... (Read 102 times)

bclement10

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The possibility that the issuer of a bond will not pay the contractual interest or principal payments as scheduled is called default risk.
 
  Indicate whether the statement is true or false

Question 2

A firm's year-end retained earnings balances are 320,000 and 400,000, for 2014 and 2015 respectively. The firm reported net profits after taxes of 100,000 in 2015. The firm's dividend payment for 2015 is ________.
 
  A) 0
  B) 20,000
  C) 80,000
  D) 100,000



djpooyouma

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Answer to Question 1

TRUE

Answer to Question 2

B



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