Interest Rate Instruments That Combine Features of Both Debt and Equity

question 28

Multiple Choice

Interest rate instruments that combine features of both debt and equity are known as___________ securities.

• A) floating rate
• B) convertible
• C) perpetual
• D) hybrid

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Definitions:

Partnership

A business structure where two or more individuals share ownership, profits, liabilities, and decision-making processes.

Ownership

Ownership denotes the legal rights to possess, use, control, benefit from, and dispose of an asset or property.

Partnership

An officially permitted business engagement where various individuals participate in oversight and income sharing.

Dissolution

The process of legally dissolving a company or partnership, ending its existence by winding up affairs, liquidating assets, and distributing the remaining assets or debts to shareholders or partners.