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: Short term financing includes which of the following:

A: A company needs financial capital to carry out its various projects and thereby by increase the…

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: Which of the following is most likely to expose the holders to counterparty credit risk? A.…

A: Counterparty credit risk is the risk where the party involved in the transactions makes default in…

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: How does the payment of a bank loan’s principal and a bond’s par value differ?

A: A bank loan is a common method and process for a business to acquire money and capital for various…

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: Which of the following types of debt securities protect investors against interest rate risk?   a.…

A: An extendable bond  is a type of debt security that includes an option Which allows the bondholder…

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: Which of the following is an example of long term instruments? (select all that apply) a. Asset…

A: Long Term Instruments are the instruments which are issues for the longer time period, generally…

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: The market interest rate.... Select the word list below: - is the contractual interest rate used to…

A: The market interest rate refers to the rate of return that is prevalent in general for all…

Q: Which of the following bond is the safest?  Treasury Bonds Corporate Bonds Savings Bonds

A: Bonds are a form of liability for the business, for which regular interest payments along with value…

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: 1. Which one of the following is not a money market security: a. Treasury Bill. b. REPO. c. LIBOR.…

A: Money market securities are short term securities or instruments generally issued by government,…

Q: The Interest rate on which of the following is the LIBOR? a. Banker's acceptances b. Repurchase…

A: LIBOR: IT IS THE BENCHMARK INTEREST RATE AT WHICH MAJOR GLOBAL BANKS LEND TO ANOTHER.

Q: What is new issue bond?

A: The bond is a fixed income financial instrument that is issued by the government or by the companies…

Q: effective interest technique

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

Q: Define Short-Term Interest-Bearing Notes.

A: Short-term interest-bearing note:   The short-term interest-bearing note is a note on which interest…

Q: When valuing a short-term security, we commonly use:

A: Introduction: Short-term securities refer to securities that have a life tenure of less than one…

Q: How is an interest payment on a bond calculated?

A: Bonds are debt instruments issued by corporations with a fixed interest rate(coupon rate) and…

Q: When does a discount on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

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: what is difference between a bond and a term loan? what are the advantages of a term loan over a…

A: A bond is a fixed-income security that speaks to credit to a borrower (normally corporate or…