Leases is classified as financial lease

Assignment Help Financial Management

Reference no: EM131581848

1. The sensitivity of bond prices to changes in interest rates is:

credit risk.

interest rate risk.

default risk.

inflation risk.

2. Which of the following leases is classified as a financial lease?

A 5 year security system lease, in which the lessee receives ownership of the security system at the end of the 5 years.

A 1 year apartment lease. The apartment has a life expectancy of 30 years.

A 2 year hunting lease, in which the land and the hunting lodge cost $675,000 and the present value of lease payments are $50,000.

A 2 year office lease. The office has a life expectancy of 30 years.

Reference no: EM131581848

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