A High, but Not Absolute, Level of Assurance Is Called

question 34

Multiple Choice

A high, but not absolute, level of assurance is called

• A) probable assurance.
• B) reasonable assurance.
• C) limited assurance.
• D) incomplete assurance.

---

Definitions:

Registered Bonds

are bonds whose ownership is recorded by the issuing company, ensuring that only the registered owner receives interest payments and the principal back.

Bearer Bonds

Bonds that are owned by the holder rather than a registered owner, and the physical possession of the bond is the only evidence of ownership.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares, typically at the discretion of the bondholder.

Bond Ratings

A classification system that denotes the credit quality and perceived risk of bonds issued by corporations, municipalities, or sovereign entities.