Which of the Following Statements Are Correct Regarding Series EE

question 46

Multiple Choice

Which of the following statements are correct regarding Series EE savings bonds?
I. Interest is accrued monthly and compounded semiannually.
II. The minimum holding period is 3 months.
III. A penalty of 3-months interest is applied to all bonds redeemed prior to maturity.
IV. Bonds held to maturity are guaranteed to double in value regardless of the interest rate.

• A) I and III only
• B) I and IV only
• C) II and III only
• D) II and IV only
• E) II, III, and IV only

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Definitions:

Paid-In Capital

Funds raised by a company through the sale of its own shares.

Dividends In Arrears

Dividends on preferred stock that have not been paid by the declaration date but are still owed to shareholders.

Non-Cumulative

Pertaining to preferred stock, which does not accumulate unpaid dividends if they are not declared.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.