Why Were Marriages an Important Source of Social Stability in Preindustrial

question 90

Multiple Choice

Why were marriages an important source of social stability in preindustrial societies?

• A) They insured that families would pay a dowry, thus contributing to the stability of both families' social status.
• B) Divorce would undermine social stability.
• C) They gave children legitimacy by preventing unwed parenting.
• D) They could serve as a means of defense and prosperity for two kinship networks.

Analyze the impact of bond premium or discount amortization on the carrying amount of bonds.

Understand the importance of actuarial information in determining the discount or premium of bonds.

Interpret the relationship between market interest rates, stated interest rates, and their impact on bond pricing and interest expense.

Understand the accounting treatment for the retirement of bonds before their maturity and the recognition of material gains or losses.

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Definitions:

Collateralized Debt Obligation

A complex structured finance product that pools together cash flow-generating assets and repackages this asset pool into tranches that can be sold to investors.

CDO

Collateralized Debt Obligation, a type of structured asset-backed security (ABS) with multiple tranches that is issued by special purpose entities and collateralized by debt obligations.

Zero-Coupon Bond

A bond that does not pay periodic interest payments and is instead issued at a significant discount to its face value and pays its full face value at maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, taking into account its current market price, par value, coupon interest rate, and time to maturity.