QUESTION 21 The risk inherent in the commercial real estate asset class has historically fallen in between which of the following alternative asset classes? a. Common stocks and Mortgage-backed securities b. Common stocks and Corporate bonds c. Corporate bonds and Mortgage-backed securities d. Common stocks and Municipal bonds

Q: Banks use to hedge against risk through options and futures contracts in order to:*         A.…

A: Banks often enter into various contract wherein a lot of risk may be involved including but not…

Q: None

A:

Q: allows the investor to transform debt into equity under certain circumstances. a. Equity shares b.…

A: Introduction: Bonds: Bonds is a debt. For bonds interest is charged on the Bond value.

Q: Interest income recognized for debt investments classified as fair value through other comprehensive…

A: Interest income recognized for debt investments classified as fair value through other comprehensive…

Q: 16- Which of the following statements is/are correct? i. The sale of stocks is also referred to as…

A: Debt and equity financing are two very different ways of financing your business.

Q: Bonds that pay no interest unless the issuing company is profitable are called Select one: O a.…

A: Wrong answer    B) Collateral trust bond: Collateral means additional security. Thus in collateral…

Q: Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt secur…

A: The percentage of bonds issued by a certain class of issuers, such as governments or businesses,…

Q: There are two risks involved in the bond investment. What are they and why are they risks?

A: Bonds are called fixed-income investments as they pay a fixed rate of interest to debtholders. They…

Q: The sale of bonds is also referred a. Debt Finance b. Equity Finance c. Private Finance d. Public…

A: BONDS IS A DEBT INSTRUEMENT.

Q: while putable bonds are beneficial to the investor when interest rates go down, the downside is that…

A: Bond risk management is the process of identifying, evaluating, and reducing the risks related to…

Q: A CDO is a debt security collateralized by debt obligations, such as residential and commercial…

A: The question is asking whether a Collateralized Debt Obligation (CDO) is a type of debt security…

Q: What are the more recently issued (and more frequently traded) bonds called? Why do investors favor…

A: The more recently issued (and more frequently traded) bonds are called Treasury Bonds which are…

Q: The market which deals with short term financial assets Select one: a. Commercial Market b. Primary…

A: Financial assets are a kind of liquid asset that generates its value from a contract that provides…

Q: Having longer-maturity assets than liabilities causes banks to bear which of the following risks? I.…

A: a risk is an uncertain event that will occur or non-occurring and implies future uncertainty and…

Q: 1. State 2 reasons why Net Present Value is a better decision criteria compared to other…

A: Net present value or NPV is an important concept used in capital budgeting. It is considered as a…

Q: where do the collateral and security in the mortgage market belong? a. securities b. properties…

A: Collateral and security in the mortgage market belong to a. securities.

Q: Interest revenue for debt investments at fair value through other comprehensive income

A: IFRS 9 - Financial instruments deals with the calculation of interest income on debt investments.

Q: Rank bonds, common stock, and preferred stock with regard to two factors the possibility of a…

A: Common stock is the stock which does not have preferential right of dividend and which are repaid by…

Q: 4) Primary Markets exist for securities such as ________ to be offered to potential investors for…

A: Primary market:  Securities are created on the primary market, and investors trade those securities…

Q: What factors determine investors' required rates of return on corporate bonds? common stocks? U.S.…

A: The required rate of return is the minimum return that an investor expects from an investment to…

Q: What are the two important differences between trading securities and HTM investments?

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Which one of the following is a risk that applies to most securitie Unsystematic Diversifiable…

A: Every individual or business invests in stocks and securities for the purpose of gaining and earning…

Q: _________ is a combination of a wide range of investment products such as bonds, shares, securities,…

A: Financial instruments are those used for trading in stock markets and investing in financial…

Q: 1. How are passive investments accounted for under ASPE? a) Cost of amortized cost. b) FVTPL…

A:

Q: The amortization of bond premium on long-term debt should be presented in a statement of cash flows…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…

Q: Question 9 The credit risk of investing in bonds is also known as: A seesaw wffect B) default risk…

A: Credit risk is the risk that the issuer of bonds will not be able to meet its financial obligations…

Q: Which of the following is not considered as a cash equivalent? O A three-year treasury notes…

A: Cash equivalents generally includes Liquid Cash, bank accounts and marketable securities, with…

Q: Which of the following may be classified as a financial asset at fair value through profit or loss?…

A: Solution: The following may be classified as a financial asset at fair value through profit or…

Q: rom the viewpoint of the investor, which of the following securities provides the least risk?…

A: Solution: Different type of securities exhibits different types of risk. The least risk is attached…

Q: How do putable and callable bonds trade relative to a similar security without an embedded option?…

A: A callable bond is a type of bond which can be redeemed before the maturity date by the issuer at…

Q: Which of the following is not one of the 5 C's of Credit?   Question 12 options:   Collateral…

A: Option D. Corporate Analysis

Q: What is a bond sinking fund investment? Question 12 options: An investment that is decreasing in…

A: A sinking fund investment is a type of investment, which is actually the money, or any portion of…

Q: 32 Which of the following is NOT regulated by Securities Commission (SC)?   Select one: Bond…

A: The securities commission will be the regulating commission of equity market and bond market in the…

Q: Question 3 What is the relationship between risk premiums and bond ratings?

A: Bonds are the long source of finance for the companies and bonds are cheap source of finance but the…

Q: In regarding the Asset backed securities & Mortgage backed securities: 1- What is the utility using…

A: Asset-backed securities  are financial instruments that are backed by income-producing assets such…

Q: A CDO is a debt security collateralized by debt obligations, such as residential and commercial…

A: The question is asking whether a Collateralized Debt Obligation (CDO) is a type of debt security…

Q: Bond Valuation Theory Question 2 Securities issued by Corporations are classified as either debt or…

A: Introduction: Debt: Borrowing money for running the company called as Debt. Debt is a liability to…

Q: Credit-rating agency ratings are associated with which of the following investor risks? interest…

A: Credit rating ageencies like S&P and Moody's are involved in analyzing the balance sheet and…

Q: Which of these selections best describes a bond investment strategy designed to provide the investor…

A: Bonds are debt securities issued by governments, municipalities, and corporations to raise capital.…

Q: 9. Which of the following is least likely to be a debt security? a. Government bonds b. Convertible…

A: Bonds and debts are the debt securities that are issued by the company in order to raise finance for…

Q: 6. This is a financial security that evidences your right to be paid with interest and principal…

A: A financial security is a tradable financial asset. Bonds, preference and common shares, derivatives…

Q: A CDO is a debt security collateralized by debt obligations, such as residential and commercial…

A: The question is asking whether a Collateralized Debt Obligation (CDO) is a type of debt security…

Q: What are the investment strategies of the bonds? And give a short comment for each.

A: A bond is a financial instrument which is used by company to raise funds from outside sources. An…

Q: The least risky capital market security is a.preferred stock. b.common stock. c.corporate bonds.…

A: The primary purpose of capital markets is to offer financial products like stocks and bonds. Stocks…

Q: Mortgage-backed securities are commonly contained within collateralized debt obligations (CDOs).…

A: The question is asking whether mortgage-backed securities (MBS) are commonly included in…