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Which of the following is a financial asset?
(a)A building
(b)Bonds
(c)Inventories
(d)Equipment
Correct option:
Reason or logic:
The buyer of a zero-coupon bond expects to receive: (a)Price appreciation (b)A rate of return equal to zero over the life of the bond. (c)Variable dividends instead of a fixed interest payment annually. (d)All interest payments in one lump sum at maturity
Correct option:
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Bonds
all interest payments in one lumpsum at maturity
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