Which of the Following Is Not a Characteristic of "Simple

question 2

Multiple Choice

Which of the following is not a characteristic of "simple" debt?

• A)Investor's purpose is collecting cash flows.
• B)An amount of principal (adjusted for premium or discount) is transferred to the borrower at issuance that will be returned to the debt holder when the debt matures.
• C)The debt instrument is not a derivative.
• D)The debt cannot be prepaid or settled in a way that the investor does not recover substantially all of its original investment unless that is what the investor chooses.

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Definitions:

Emerging Adulthood

A phase of the life span between adolescence and full-fledged adulthood which encompasses late teens through twenties, marked by exploration of possible life directions.

Puberty

A developmental stage in humans marking the onset of sexual maturity and the ability to reproduce.

Young Adulthood

A developmental stage ranging approximately from the late teens to the mid to late 30s, focusing on building careers, relationships, and personal identity.

Ova

Female reproductive cells in animals and plants, also known as egg cells in animals.