Which One of the Following Statements Is Correct Concerning Bond

question 35

Multiple Choice

Which one of the following statements is correct concerning bond classifications?

• A)A mortgage security is a bond issued solely by a home builder.
• B)A debenture is a long-term bond secured by the fixed assets of a firm.
• C)A note is a bond which has an original maturity date longer than 10 years.
• D)A callable bond can be repurchased by the issuer prior to the initial maturity date.
• E)A subordinated bond receives preferential treatment over all other bonds in a bankruptcy.

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Definitions:

Intellectual Ability

The capacity to think abstractly, reason, understand complex ideas, learn quickly, and solve problems, often assessed through IQ tests.

IQ Score

A numerical measure of a person's intelligence as compared to the average intelligence of their age group, often derived from standardized tests.

Reliability

The extent to which a measuring instrument yields consistent and reliable outcomes across different periods.

Coleman

Refers to James S. Coleman, an American sociologist known for his work in educational sociology, including the influential "Coleman Report" on educational inequality.