Which of the following would be considered examples of a short-term discount security?   Select one: a. Certificates of Deposit (CD) b. Commercial paper/ Promissory Note c. Both A and B d. Treasury Bonds

Q: A callable bond: Select one: a. can be paid off early at either the issuer's or the bondholder's…

A: Organizations issue bonds for financing their operation and pay the interest on these bonds annually…

Q: A bond is like a loan. The issuer is the borrower, the holder is the lender and the coupon is the O…

A: The bond is the financial instrument used to raise money from the market.

Q: What is the excess of the issue price of bonds over their face amount called? premium discount…

A: Premium on Bonds: When bond market costs higher than its face value then bonds is called at premium.…

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 is the difference between face rate and market rate, and which rate would be higher if a bond…

A: There are many types of financial instruments issued to raise funds.

Q: Define: Mortgage bond Long term bond Muncipal bond Security bond

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Which of the following best describes a bond?     Short-term debt security      Long-term debt…

A: Bonds are debt instruments issued by companies and other entities like municipalities etc.Bonds…

Q: What is the difference between a note and a bond?

A: Both Note and bond are issued by treasury.These are interchangeably used terms as there is no legal…

Q: What is original issue discount (OID) bond?

A: It is the amount of difference between the amount due at maturity and purchase value. These bonds…

Q: A strip bond is Select one: O a. a financial tool that has an unknown payout O b. a long term…

A: A strip bond is a marketable bond that has been stripped of all interest payments and is one of the…

Q: How does mortgage pay-through bond (MPTB) resemble a mortgage-backed bond (MBB)? How does it differ?

A: Introduction: The mortgage pay-through bonds are also called as hybrid securities. These bonds have…

Q: What is the principal repayment for a bond

A: There are two components principal and interest

Q: Explain face amount, discount, and premium relating to bond issuance.

A: Face value is also known as par value. Face amount of bond issuance is the amount on which coupon…

Q: Explain the Characteristics of Mortgage Pass-Through Securities?

A: Mortgage Pass-Through Securities Likewise called a pass-through, a security that is made when at…

Q: d) Special provision is one factor that determines the interest rates for individual securities.…

A: The various provisions affect the interest rate for individual securities. these factors are namely…

Q: How does the carrying value of a bond gets amortized when selling it at discount?

A: The carrying value of bond represents the amount of Bond Face Value + unamortized premium (or )–…

Q: effective interest technique

A: Bonds are the financial securities used to raise debt fund from public. They carry fixed interest…

Q: What is the journal entry to record the bond interest payment if you do not have to neither a…

A: The objective of the question is to identify the correct journal entry to record the bond interest…

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: Why is it necessary to amortize the discount and premium on bond issues?

A: Introduction:   Bonds may be sold at a discount, at a premium, or at face value.

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: Explain Mortgage pay-through bonds (MPTBs)?

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Which of the following are all traditional credit risk enhancement techniques? Group of answer…

A: credit risk mitigation technique is institutional collatoral agreement used to reduced credit risk.

Q: In regard to a bond discount or premium, what is the effective-interest amortization method?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: link between the price of bonds and the rate of interest?

A: There is a inverse relationship between price of bonds and rate of interest.  If interest rate…

Q: What is the straight-line amortization approach with regards to a bond discount or premium?

A: Bond with a straight-line amortization schedule: The straight-line amortization technique is a way…

Q: Why would we record a bond a premium or discount?

A: Bond is a type of debt security which is issued by the bond issuer at the time taking debt from bond…

Q: What are the similarities and difference between bonds and notes?

A: Notes payable: Notes payable is a written promise to pay a certain amount on a future date, with…

Q: g. The discount bond sells for ____________ as maturity approaches.

A: A discount bond is a bond that is issued at less than fair value. It can also be the case that the…

Q: Explain Subprime Mortgage-Backed Securities?

A: Mortgage-backed security: A mortgage-backed security is a kind of asset-backed security which is…

Q: What steps would you take to purchase a bond and how would you secure a return?

A: Bonds are corporate debt units that are issued by firms and collateralized debt obligations as…

Q: In regard to a bond discount or premium, what is the straight-line amortization method?

A: Straight-line amortization bondStraight line method of amortization is a process of amortizing…

Q: Explain Mortgage pass-through securities (MPTs)?

A: Mortgage pass through securities are also known as pass through securities are mortgage backed…

Q: What are the two ways for amortizing bond premiums and discounts? Each one must be explained.

A: One of the sources used by the corporation to raise capital is the issue of bonds. Types of bonds:…

Q: What are the possible reasons for bond issuers to make use of the call feature?

A: Callable Bonds refers to bonds issued with a right held by issuer to redeem that bonds at defined…

Q: The effective interest technique is used to charge a discount on a bond that is due to be paid to…

A: The most effective approach to generating interest is... To amortize a bond over some time, the…

Q: Describe the process to record a bond a face value, discount value and premium?

A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…