Which Type of Home Has a Tendency to Quickly Depreciate

question 47

Multiple Choice

Which type of home has a tendency to quickly depreciate in value?

• A)Cooperative
• B)Mobile home
• C)Condominium
• D)Duplex
• E)Previously-owned single family home

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Definitions:

STRIPS

Separate Trading of Registered Interest and Principal Securities, a type of U.S. government security that allows the separate trading of interest and principal components.

Treasury Notes

Intermediate-term U.S. government debt security with a maturity of 1 to 10 years and pays interest every six months.

Maturity at Issue

The predetermined date when a financial instrument, such as a bond, will come due and the principal is to be paid back to investors.

Default Risk

The potential risk that an issuer of a bond or other debt security will be unable to make principal and interest payments when due.