Which of the Following Statements Is Correct

question 5

Multiple Choice

Which of the following statements is correct?

• A) If a company is retiring bonds for sinking fund purposes it will buy back bonds on the open market when the coupon rate is less than the market interest rate.
• B) A bond sinking fund would be good for investors if interest rates have declined after issuance and the investor's bonds get called.
• C) Mortgage bonds have less default risk than debentures.
• D) Both a and c are correct.
• E) All of the statements above are correct.

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Definitions:

Plan Members

Individuals who are enrolled in and receive benefits from a health insurance plan or program.

Explanation of Payment

A detailed description or clarification of why a payment was made and what it covers.

Remittance Advice

A document sent by a payer to a payee, providing details on the payment of an invoice, including information on any adjustments or deductions taken.

Indemnity Plans

Health insurance plans that reimburse the insured for medical expenses regardless of the healthcare provider used.