Thursday, 10 September 2015

Cima P1 Exam Question No 19

Question No 19:

In finance, a bond is described as?

A.
A negotiable instrument offering a fixed rate of interest over a fixed period of time and with a fixed redemption value.
B.
A negotiable instrument which provides evidence of a fixed term deposit with a bank. Maturity is normally within 90 days but can be longer.
C.
A document which sets out a commitment to pay a sum of money at a specified point in time.
D.
An unsecured short term loan note issued by companies and generally maturing within a period of up to one year.

Answer: A

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