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:

White-Collar Crime

Non-violent criminal activities committed by individuals, typically during the course of their profession, involving deceit, fraud, or breach of trust.

Privileged Deviance

Deviant acts committed by individuals of higher social status, which often go unpunished or are treated leniently due to their position.

Organized Crime

Criminal activities that are planned and controlled by powerful groups and carried out on a large scale.

Tax Evasion

The illegal act of not paying taxes by individuals, corporations, and trusts, through various means including dishonest tax reporting.