Which of the Following Statements Is CORRECT

question 12

Multiple Choice

Which of the following statements is CORRECT?

• A) One advantage of a zero coupon Treasury bond is that no one who owns the bond has to pay any taxes on it until it matures or is sold.
• B) Long-term bonds have less interest rate price risk but more reinvestment rate risk than short-term bonds.
• C) If interest rates increase, all bond prices will increase, but the increase will be greater for bonds that have less interest rate risk.
• D) Relative to a coupon-bearing bond with the same maturity, a zero coupon bond has more interest rate price risk but less reinvestment rate risk.
• E) Long-term bonds have less interest rate price risk and also less reinvestment rate risk than short-term bonds.

Understand the requirements for contract modifications under the UCC.

Distinguish between the mirror-image rule and UCC’s stance on contract terms and acceptance.

Identify different types of sales and the concepts of title as outlined by the UCC.

Recognize the scope and applications of various articles within the UCC, including goods and leases.

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Definitions:

Accountancy Firm

A business that provides accounting, tax preparation, auditing, and financial management advisory services to clients.

Truth In Lending Act

A federal law designed to protect consumers in their dealings with lenders and creditors, by requiring clear disclosure of key terms in the lending agreement and all costs.

Fair Credit Reporting Act

A U.S. federal law designed to regulate the collection, dissemination, and use of consumer information, including consumer credit information.

Disclosure Duties

Legal obligations to reveal pertinent information during transactions or legal proceedings.