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

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Suggested Answer: A

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

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Jutta

10 days 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.

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Brandon

12 days 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.

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