USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 44

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 12.1. What is the capital gains/loss yield on this bond?

• A) -0.038 percent
• B) 0.456 percent
• C) 0.038 percent
• D) -0.456 percent
• E) 0 percent

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Definitions:

Donee Beneficiary

A third party who benefits from a contract made between two other parties.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, despite not being a party to that contract and having no rights to enforce the terms of the contract.

Intended Beneficiary

A person or entity that is not a party to a contract but stands to benefit from the contract's performance.

Obligor

A contractual party who agrees to do something for the other party.