Unsecured Bonds Are Called ________

question 45

Multiple Choice

Unsecured bonds are called ________.Secured bonds are called ________.

• A)convertible bonds;callable bonds
• B)term bonds;serial bonds
• C)debentures;mortgage bonds
• D)regular bonds;special bonds

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Definitions:

Payback Period

Payback period is the duration required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Salvage Value

The determined residual amount of an asset at the cessation of its utility.

Net Cash Inflows

The total amount of cash received minus cash paid out over a specific period, not including non-cash expenses.