Which of the Following Describes a Serial Bond

question 33

Multiple Choice

Which of the following describes a serial bond?

• A) A bond that repays principal in installments
• B) A bond that gives the bondholder a claim for specific assets if the issuer fails to pay
• C) A bond that matures at one specified time
• D) A bond that is not backed by specific assets

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Definitions:

Working Capital

An indicator of a company's short-term financial health, calculated as current assets minus current liabilities.

Quick Ratio

A liquidity measure that indicates a company's ability to pay its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

Current Ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Contingent Liabilities

Potential liabilities that may or may not become actual liabilities, depending on the outcome of uncertain future events.