Which of the Following Would NOT Normally Be a Reason

question 38

Multiple Choice

Which of the following would NOT normally be a reason for a bond swap?

• A) increasing current yield
• B) improving the quality of the portfolio
• C) taking advantage of interest rate shifts
• D) tax savings
• E) realigning the portfolio's duration

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Definitions:

Stock Investments

Financial assets representing ownership in a corporation, giving the holder a share of the corporation's earnings and assets.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, by recognizing income in proportion to their ownership percentage.

Cash Dividends

The allocation of a part of a corporation's profits, determined by its board of directors, to a group of its stockholders as cash.

Comprehensive Income

Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. It encompasses net income and other comprehensive income items.