CSI IFC Part 3 UPDATED ACTUAL Questions and CORRECT Answers
0 view 0 purchase
Course
CSI IFC
Institution
CSI IFC
SI IFC Part 3 UPDATED ACTUAL
Questions and CORRECT Answers
Banker's Acceptance (BA) - CORRECT ANSWER- a commercial draft drawn by a
borrower for payment on a specified date. a BA is guaranteed at maturity by the borrower's
bank. Sold at a discount and mature at their face value.
Call - CORR...
CSI IFC Part 3 UPDATED ACTUAL
Questions and CORRECT Answers
Banker's Acceptance (BA) - CORRECT ANSWER✔✔- a commercial draft drawn by a
borrower for payment on a specified date. a BA is guaranteed at maturity by the borrower's
bank. Sold at a discount and mature at their face value.
Call - CORRECT ANSWER✔✔- a call feature allows the issuing corporation to redeem, or
pay back, the bondholders before the stated maturity date
Call premium - CORRECT ANSWER✔✔- Is measured by the difference between a
security's par value and the price the issuer must pay to call it for retirement
callable preferred - CORRECT ANSWER✔✔- may be redeemed upon due notice by the
security's issuer
Canada Premium Bond (CPB) - CORRECT ANSWER✔✔- a relatively new type of savings
product that offers a higher interest rate compared to the Canada Savings Bond and is
redeemable once a year on the anniversary of the issue date or during the 30 days thereafter
without penalty
Canada Savings Bond (CSB) - CORRECT ANSWER✔✔- A loan from the purchaser to the
Government of Canada, in return for a promise that the purchaser will receive the face value
of the bond, plus interest, on or before the maturity date
Commercial Paper - CORRECT ANSWER✔✔- a short term debt security whose issuer
promises to pay the maturity value by a stated date. Only issued by very credit worthy
companies
Convertible bond - CORRECT ANSWER✔✔- can be converted to a given number of
common shares, generally of the same company. Conversion is usually permitted during
periods determined by the issuer or the issuer can force conversion if the market conditions
warrant it
, Convertible preferred shares - CORRECT ANSWER✔✔- Can be converted to a given
number of common shares of the same company
Corporate Bonds - CORRECT ANSWER✔✔- issued by corporations mainly to finance the
acquisition of equipment. They are subject to interest rate risk but, unlike government bonds,
are also subject default risk. Often, specific assets are pledged as collateral to guarantee
repayment of the debt
cumulative preferred - CORRECT ANSWER✔✔- for these shares, dividends not paid in one
period will accumulate and be paid in a later period
current yield - CORRECT ANSWER✔✔- computed by dividing the coupon or dividend
payment for one year by the current market price of the security. Compares the short-term
return on different securities.
debentures - CORRECT ANSWER✔✔- bonds that have no assets pledged as collateral in
the case of default
default risk - CORRECT ANSWER✔✔- the risk that a mortgage, bond, or preferred share
will not make its anticipated interest or dividend payment, or principal will not be repaid at
maturity
derivative securities - CORRECT ANSWER✔✔- a security whose value is determined by
the value of some other security or asset. An option or a future
dividend yield - CORRECT ANSWER✔✔- dividends earned during ownership of the shares
fixed-income security - CORRECT ANSWER✔✔- securities that generate predetermined
periodic interest or dividend income
futures contract - CORRECT ANSWER✔✔- a transferrable agreement to deliver or take
delivery of a fixed quantity of an asset for a specific price by a specific future date
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
