When Firms Issue ____, the Amount of Interest and Principal

question 45

Multiple Choice

When firms issue ____, the amount of interest and principal to be paid is based on specified market conditions. The amount of the repayment may be tied to a Treasury bond price index or even to a stock index. ​

• A)auction-rate securities
• B)structured notes
• C)leveraged notes
• D)stripped securities

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Definitions:

Olivine

A green iron-magnesium silicate mineral that composes much of the upper mantle and also occurs in mafic and ultramafic igneous rocks.

Plagioclase

A very common rock-forming feldspar mineral that contains sodium, calcium, or both elements.

Crystallization

The process by which a solid forms, where the atoms or molecules are highly structured in a pattern extending in all three spatial dimensions.

Felsic Minerals

Light-colored minerals that are rich in silica and aluminum, commonly found in continental crust rocks like granite.