The IR Stretching Frequency Occurs at the Lowest Frequency for Which

question 26

Multiple Choice

The IR stretching frequency occurs at the lowest frequency for which of these bonds?

• A)C-H
• B)C-O
• C)C-Br
• D)C-N
• E)C-F

---

Definitions:

Deferred Revenue Account

An account on the balance sheet that represents payment received by a company for goods and services not yet delivered or rendered, considered a liability.

Liability Account

A liability account is a financial reporting account that is used to record obligations or debts that a company owes to others, such as loans, accounts payable, or mortgages.

Noninterest-Bearing Notes

These are promissory notes issued at a discount to face value that do not pay periodic interest, with the return to the investor being the difference between the purchase price and the face value at maturity.

Discounted Note

A promissory note whose face value has been reduced to reflect the effect of interest that it will earn.