Question 21Financial insurance is a type of insurance in which the insurance company will pay to bond holders if the issuerO is not a NYSE listed companyis not profitable during the yeardoes not pay dividends to shareholdersO fails to pay interest or principal< Previous

Insurance provides several advantages including risk mitigation, peace of mind, financial security,…

Question 21 Financial insurance is a type of insurance in which the insurance company will pay to bond holders if the issuer O is not a NYSE listed company O is not profitable during the year O does not pay dividends to shareholders O fails to pay interest or principal

Question 21 Financial insurance is a type of insurance in which the insurance company will pay to bond holders if the issuer O is not a NYSE listed company O is not profitable during the year O does not pay dividends to shareholders O fails to pay interest or principal

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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80 Which of the following statements regarding debt securities classified at fair value through profit or loss is incorrect? Group of answer choices Unrealized holding gains and losses are reported in the profit or loss. They are held primarily to be sold in a short period of time. Gain on sale is the excess of net selling price over the previous fair value of securities sold. None of these. Any discount or premium on debt securities is amortized using the effective interest method.
All option are Company B, Company A
2 pt Which of the following is a FALSE statement? O A mortgage does not give the lender a right to be paid from the cash proceeds of the sale of a borrowers' assets identified in the mortgage. O Mortgage notes pledge specific assets as security for the note. O A mortgage contract describes the mortgage terms. O Accounting for mortgage notes and bonds is similar to that for unsecured notes and bonds, except that th mortgage agreement must be disclosed.
Question 21 If an issuer retires a debt issue before its maturity, the amount paid to do so is called the: A) sinking fund amount. B the discount. Ⓒ par or face amount. D amortized payoff. E call price.
n reference to intercompany transactions between an investor and an investee, when the investor can significantly influence the investee, which of the following statements is correct, assuming that the investor is using the equity method? Question 9Answer a. As long as the investor recognizes the effects of the transaction in its financial statements, it is notrequired to provide any additional disclosures. b. In reporting its share of earnings and losses of an investee, the investor must eliminate the effect of profits and losses on the intercompany transactions until they are realized. c. None of the others are correct. d. There is the presumption of arms-length bargaining between the related parties.
________ bonds are characterized by interest payments that are required only when earnings are available from which to make such payment Floating rate Revenue Junk Mortgage
15 A certificate of deposit (CD) is issued when Lo-Risk Invest LLC deposits funds with Money Bank on the bank’s promise to repay the funds, with interest, on a certain date. Lo-Risk cannot withdraw the funds before the date of maturity because a. a CD is not a three-party instrument. b. the bank is both the issuer of the instrument and the drawee. c. a CD cannot be sold or negotiated to a third party before maturity. d. a CD is a time deposit. 1)Donut Shop(16 signs a promissory note for $50,000 in favor of Enterprise Lending Inc. The note includes an acceleration clause. This note is a. nonnegotiable, because the maker can move up the payment date. b. negotiable. c. nonnegotiable, because payment can be demanded early if a specified event occurs. d. nonnegotiable, because the maturity may be extended into the future. 2). Bon signs a promissory note for $12,500 (18)in favor of Car Loans Inc. The note specifies payment by a certain date and includes an option to pay early. This note…

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