Unlike bonds issued by a company, Series EE savings bonds do not pay interest while you hold them. Instead, they accumulate interest and increase in value.
True*
False
Most publicly traded companies have millions of bonds outstanding, so one bond represents a very small fraction of ownership in that company.
True
False*
both ok
okay. thank you
The statement "Unlike bonds issued by a company, Series EE savings bonds do not pay interest while you hold them. Instead, they accumulate interest and increase in value" is FALSE. Series EE savings bonds do pay interest while you hold them. The interest is added to the bond's value and increases over time.
The statement "Most publicly traded companies have millions of bonds outstanding, so one bond represents a very small fraction of ownership in that company" is TRUE. Publicly traded companies often have a large number of bonds outstanding, so owning one bond would represent a small percentage of ownership in the company.
To confirm the answer, we can logically deduce the correct response through a step-by-step analysis.
1. The first statement regarding Series EE savings bonds not paying interest while you hold them, but instead accumulating interest and increasing in value, is true. This is a characteristic of Series EE savings bonds.
2. The second statement is regarding publicly traded companies and their bond offerings. Bonds represent debt, and each bond represents a portion of the company's debt. Therefore, the statement indicating that most publicly traded companies have millions of outstanding bonds and that one bond represents a very small fraction of ownership in the company is false. Bonds do not represent ownership in the company; they represent debt.
Hence, the correct answer is:
True*
False