The ___________ Is an Accrual Class of a CMO That

question 65

Multiple Choice

The ___________ is an accrual class of a CMO that makes a payment to bondholders only when preceding CMO classes have been retired:

• A)A Class
• B)B Class
• C)Z Class
• D)R Class

---

Definitions:

Net Advantage to Leasing

The total financial benefits of leasing an asset, compared to purchasing it, taking into account all costs and savings.

Lease Payments

Regular payments made by a lessee to a lessor for the use of a leased asset.

CCA Rate

The percentage rate used in Canada to calculate capital cost allowance, which is a deductible expense for tax purposes on the depreciation of assets.

Break-Even Lease Payment

The lease payment amount at which the cost of leasing equals the financial benefits, resulting in no net loss or gain.