The Payment of Hu's Debt to Ian Is Guaranteed by Hu's

question 14

Multiple Choice

The payment of Hu's debt to Ian is guaranteed by Hu's personal prop-erty.To give notice of his interest in Hu's property to other creditors,Ian is most likely to

• A)attach a bright label to Hu's property.
• B)e-mail other potential creditors.
• C)file a financing statement with the appropriate authority.
• D)publish a collection notice in local newspapers.

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Definitions:

Maturity Value

The total amount of principal and interest due to be paid at the end of a loan or investment period.

Compounded Semi-annually

Interest that is calculated and added to the principal amount twice a year, leading to interest being earned on interest.

Strip Bond

A type of bond where the coupon payments have been separated from the principal, allowing them to be sold independently as zero-coupon bonds.

Discount Rate

The interest rate charged by central banks for loans to commercial banks or the rate used in discounted cash flow analysis to determine present value.