Which of the Following Arrangements Would NOT Represent a Possible

question 80

Multiple Choice

Which of the following arrangements would NOT represent a possible example of "off-balance-sheet financing"?

• A) non-consolidated subsidiaries
• B) variable interest entities
• C) operating leases
• D) capital or financing leases

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Definitions:

Par-value

The nominal or face value of a bond, share of stock, or other financial instrument, representing the value at which it will be redeemed at maturity.

Zero-coupon Bonds

Bonds that do not pay periodic interest and are sold at a discount from their face value; the return comes from the difference between the purchase price and the face value paid at maturity.

Yield To Maturity

The total return expected on a bond if it is held until the date it matures, including all interest payments and the repayment of the principal.