Course Title: Principle of Healthcare Finance Because debt ratings affect the cost of financing significantly, healthcare borrowers (particularly not-for-profits) historically have used _____to raise the rating on a bond issue.     Floating interest rate     Investment-grade debt     Credit enhancement     Junk debt

Policy reserves for life insurers are the loss reserves equivalent of P&C insurers. True False

Compared to junior unsecured debt, subordinated debt exhibits __________ credit risk, __________ yield, and __________ recovery rate.   A.   lower         /           lower               /           higher   B.   higher        /           higher              /           lower   C.   higher        /           lower               /           lower   D.   lower         /           higher              /           lower

The _______________ problem is when customers who are most likely to have a claim against an insurance company are those quickest to apply for an insurance contract.  Group of answer choices a. Capital adequacy b. Default risk c. Adverse selection d. Mismatched maturity

Match the words with the term.   Question 7 options: 12345 insurance 12345 guarantees 12345 ability to repay loan 12345 status of industry 12345 integrity   1. capacity 2. collateral 3. coverage 4. character 5. conditions

A Collateralized Mortgage Obligation (CMO) allows you to create some AAA rated tranches from a pool of subprime mortgages by ordering the tranches by payback precedence.   Question 36 options:   True   False

Discuss why Property & Casualty (P&C) Insurers must be concerned about the yield (earnings) on their investment portfolio.

Critically discuss five ways in which banks and/or bond holders can manage the credit risk of the loans or bonds they hold as investment assets.

Course Title: Principle of Healthcare Finance What are the two types of long-term debt?     Payables and receivables     Term loans and bonds     Liabilities and receivables     Stocks and bonds

If a bond is backed by the revenue generated from a project, it is called______ Group of answer choices GO bond Revenue bond Green bond tax-supported bond