Bonding Involves All of the Following except

question 135

Multiple Choice

Bonding involves all of the following except

• A)The company obtains insurance protection against misappropriation of assets by a dishonest employee.
• B)The insurance company screens employees before they are added to the policy.
• C)The company informs employees that the insurance company will vigorously prosecute all offenders.
• D)Employees do not commit inappropriate acts because of the threat of prosecution and their loyalty to the employer.

---

Definitions:

Long Maturity

Long maturity refers to bonds or other fixed-income securities with a longer period until their expiry date, typically associated with greater sensitivity to interest rate changes.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, reflecting how much the price is expected to change with a 1% move in rates.

Yield Change

A change in the rate of return on an investment, often used in the context of bonds to indicate a change in interest rates or bond prices.

Price Decline

A decrease in the market price of an asset or security over a certain period.