Bonds differ from stock in all of the following ways except bonds are debt and s
ID: 2460809 • Letter: B
Question
Bonds differ from stock in all of the following ways except
bonds are debt and stock is ownership.
bonds have maturity dates and stocks have indefinite lives.
dividends must be paid each period, and interest on bonds does not.
bond interest is deductible for tax purposes, and dividends on stock are not.
none of the above
a.bonds are debt and stock is ownership.
b.bonds have maturity dates and stocks have indefinite lives.
c.dividends must be paid each period, and interest on bonds does not.
d.bond interest is deductible for tax purposes, and dividends on stock are not.
e.none of the above
Explanation / Answer
C.dividends must be paid each period, and interest on bonds does not.
All the other statements are true they differ from bond to stock.but either dividend or interest to paid periodically