Floating-Rate Bonds Generally Have

question 12

Multiple Choice

Floating-rate bonds generally have

• A)an unlimited variable rate of interest.
• B)a fixed coupon rate and a variable principal balance.
• C)both a call and a put provision.
• D)both a put provision and a collar.
• E)a collar only on the bond's principal.

Comprehend how misrepresentations in zoning, whether intentional or accidental, can lead to legal actions for deceived parties.

Know the duty of care expected from professionals such as land appraisers towards their clients and third parties relying on their expertise.

Identify situations where a plaintiff may not succeed in an action for negligence due to the circumstances surrounding the duty of care and its breach.

Understand the application of negligent misstatement causing economic loss in professional advice and valuation scenarios.

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Definitions:

Periodic Basis

An accounting method where transactions are recorded and financial statements are prepared at regular, specific intervals, such as monthly, quarterly, or annually.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governments, entitled to receive interest payments and the principal repayment.

Premium Amortization

The gradual reduction of the premium paid above the par value of a bond, allocated over the bond's life.

Bond Amortization Schedule

A schedule that outlines the periodic reduction of the discount on bonds payable or the premium on bonds payable, along with the interest expense over the life of the bond.