What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund ?

What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation ?

A. Bond

B. T-bills

C. Stock

D. Promissory note

Which is NOT an essential element of an ordinary annuity ?

A. The amounts of all payments are equal.

B. The payments are made at equal interval of time.

C. The first payment is made at the beginning of the first period.

D. Compound interest is paid on all amounts in the annuity.

What is the type of annuity that does not have a fixed time span but continues indefinitely or forever ?

A. Ordinary annuity

B. Perpetuity

C. Annuity due

D. Deferred annuity

What is the type of annuity where the first payment does not begin until some later date in the cash flow ?

A. Ordinary annuity

B. Perpetuity

C. Annuity due

D. Deferred annuity

What is the type of annuity where the payments are made at the beginning of the each period starting from the first period ?

A. Ordinary annuity

B. Perpetuity

C. Annuity due

D. Deferred annuity