The Consolidated Omnibus Reconciliation Act (COBRA)

question 12

Multiple Choice

The Consolidated Omnibus Reconciliation Act (COBRA) :

• A)increased funding for Medicaid in 1985
• B)allowed the continuation of group health insurance coverage after a person leaves his or her employment
• C)expanded coverage for all senior citizens under Medicare
• D)eliminated pre-existing condition clauses in health insurance policies
• E)expanded coverage for uninsured Americans

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Definitions:

Coupon

The interest rate on a bond that the issuer promises to pay to the holder until maturity.

Zero-Coupon Bond

A bond that does not pay periodic interest and is sold at a discount from its face value, with the return being the difference between the purchase price and the bond's face value at maturity.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often indicating the bond's price volatility.

Coupon

The interest rate stated on a bond when issued, which is typically paid at regular intervals until maturity.