Conyers Bank Holds U

question 22

Multiple Choice

Conyers Bank holds U.S.Treasury bonds with a book value of $30 million.However,the U.S.Treasury bonds currently are worth $28,387,500. The bank's portfolio manager wants to shorten asset maturities.Which of the following statements is true?

• A)The portfolio manager is reluctant to sell the bonds outright since the bank will have to take a loss.
• B)The portfolio manager is willing to sell the bonds outright since they are not as valuable as their book value.
• C)The portfolio manager is willing to sell the bonds outright since they are more valuable than their book value.
• D)The portfolio manager is reluctant to sell the bonds outright since the bank will have to pay taxes on the gain.

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Definitions:

Level of Income

A measure of the monetary amount earned by an individual or household, often categorized to analyze economic status or social class.

Young Adults

Individuals in their late teens to early thirties, a period marked by exploration, the establishment of personal and professional identities, and transition into more adult responsibilities.

United States

A country located in North America, known for its diverse culture and strong influence in global affairs.

Safe Haven

One of the three purposes of the attachment system. Bonds between infant and caregiver make the caregiver a source of comfort when distressed.