Today we have a question relating to the new 2019 syllabus for F2.
The question was:
Which one of the following is not a characteristics of a Bond?
This question relates to ‘A: Financing Capital Projects’ and is a slightly different version of the question in one of our free mock exams.
The correct answer was…
A Bond would provide the investor with: the payment terms (monthly/yearly returns) and the maturity date (when the principle amount will be repaid). A Bond will often include covenants, which stipulate certain financial measures the organisation must maintain – staying below a certain level of gearing or having x times the interest rate cover.
Dividends are associated with Shares.
For more free questions use our Free CIMA Mock Exams for the 2019 syllabus use the menu above to access our little shop, at the same time you’ll have the option to upgrade to our + package which includes 50% more CIMA Mock Exam style questions, feedback and both revision and timed assessment modes plus much more.