Which One of the Following Is a Security That Only

question 47

Multiple Choice

Which one of the following is a security that only pays the principal cash flows to investors?

• A)split strip
• B)interest-only strip
• C)amortized strip
• D)principal-only strip
• E)final strip

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Definitions:

Compensatory Damages

Monetary compensation awarded to reimburse a plaintiff for actual losses suffered due to a defendant's wrongdoing.

Punitive Damages

Financial compensation awarded to a plaintiff to punish the defendant for egregious misconduct and deter future similar acts.

Mitigate Damages

A legal principle requiring a party suffering loss to take reasonable action to minimize the extent of the damage resulting from a breach of contract or tort.

Consequential Damages

Refers to damages that are not directly caused by a breach of contract but result from the particular circumstances of the plaintiff.