SOFE Exam SOFA-CFE Topic 3 Question 104 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 104
Topic #: 3

If an insurance company actively buys and sells bonds and does not intend to hold the bonds to maturity, bonds are reported at market values and temporary changes in the market values of bonds are included in earnings, this is called:

Aintermediate bond sharing

BSecurities Valuation Office

Ctrading securities

Dheld-to-maturity securities

Show Suggested Answer

Suggested Answer: A

by Aileen at Dec 09, 2024, 08:30 PM

Limited Time Offer

25%

Off

Get Premium SOFA-CFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Reita

1 months ago

I bet the insurance company is having a bond market party over there. 'Temporary changes in market values'? More like constant roller coaster rides!

upvoted 0 times

Micaela

2 days ago

C) trading securities

upvoted 0 times

...

Lashawnda

3 days ago

It must be a lot of work to keep track of all those changes in market values.

upvoted 0 times

...

Cherilyn

5 days ago

D) held-to-maturity securities

upvoted 0 times

...

Marica

8 days ago

I wonder how often they have to update the market values of those bonds.

upvoted 0 times

...

Royal

14 days ago

C) trading securities

upvoted 0 times

...

Barb

25 days ago

A) intermediate bond sharing

upvoted 0 times

...

Audry

1 months ago

C) trading securities is the way to go. Who needs to hold onto those bonds when you can just buy and sell them for a profit? Cha-ching!

upvoted 0 times

...

Gilberto

2 months ago

Trading securities, huh? Sounds like a great way to make a quick buck, but I'd rather not take the risk. Give me those held-to-maturity securities any day!

upvoted 0 times

Bev

18 days ago

Trading securities may offer higher potential returns, but they also come with higher risks. It's all about finding the right balance for your investment strategy.

upvoted 0 times

...

Jolene

1 months ago

I think it's important to consider your risk tolerance when choosing between trading and held-to-maturity securities.

upvoted 0 times

...

Farrah

1 months ago

I agree, trading securities can be risky. I prefer the stability of held-to-maturity securities.

upvoted 0 times

...

Jutta

2 months ago

I'm not sure, but I think it's important to consider the intention of holding the bonds to maturity when determining how to report them.

upvoted 0 times

...

Brandon

2 months ago

Hmm, I was thinking it might be D) held-to-maturity securities, but I guess that's not the case if the company is actively buying and selling the bonds.

upvoted 0 times