Michael Is the Payroll Accountant for a Non-Profit

question 15

Multiple Choice

Michael is the payroll accountant for a non-profit. In his personal life, he is also a single father of three young children. On the day that payroll is supposed to be issued, his children are sick and he
Is unavailable to be at work. The employees' paychecks cannot be issued without his presence.
Which ethical principle most closely governs this situation?

• A) Integrity
• B) Objectivity and Independence
• C) Responsibilities
• D) Professionalism

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Definitions:

Time To Maturity

The remaining duration until the expiration date of a financial instrument, when its principal is due to be paid to holders.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value, and paid to bondholders at specified intervals until maturity.

Coupon Bond

A bond that entitles the holder to a fixed interest payment, or coupon, periodically until the bond matures.

Interest-Rate Risk

The potential for investment losses due to changes in interest rates, affecting the value of interest-bearing assets like bonds.