Which of the Following Bonds Is Secured by Assets

question 21

Multiple Choice

Which of the following bonds is secured by assets?

• A) A mortgage bond
• B) A floating rate bond
• C) A debenture
• D) All of the above

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Definitions:

Fair Value

An estimated market value of an asset, liability, or financial instrument, determined based on the current market conditions and not its historical cost.

Equity Investment

Investment in stock or equity interests of a company, representing ownership and often granting voting rights and dividends to the investor.

Fair Value Model

An accounting approach where assets and liabilities are revalued periodically to reflect their current market values rather than historical cost.

Amortized Cost Model

An accounting method where the carrying amount of a financial asset or liability is adjusted for amortization of discount/premium and impairment losses.