Free CFE Exam Braindumps (page: 24)

Page 24 of 105

Premium paid for which bonds will be written off immediately to prevent a negative yield from being generated?

  1. Preventive holdings
  2. Detective coupon
  3. Zero coupon convertible
  4. Amortization rate

Answer(s): C



The amount paid plus or minus any premium or discount payment to date to adjust the value to par or face amount by maturity date is known as:

  1. amortized cost
  2. reimbursement cost
  3. neutral cost
  4. face value

Answer(s): A



An insurance company may invest in common stocks in order to:

  1. earn dividend income
  2. achieve equity appreciation
  3. Both A and B
  4. Neither A nor B

Answer(s): C



If the stock issue is non-cumulative it behaves like common stock in that if a company does not declare a dividend, who is not entitled to a payment?

  1. bonds stock holder
  2. preferred stock holder
  3. exchange stock holder
  4. investment stock holder

Answer(s): B



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sena commented on May 31, 2019
I will see if this helps
TURKEY
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