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SOFE Exam SOFA-CFE Topic 3 Question 104 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 104
Topic #: 3
[All SOFA-CFE Questions]

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:

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Suggested Answer: A

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

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Jutta
1 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
3 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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Mauricio
4 days ago
I agree with Allene, because if the company is actively buying and selling bonds, it makes sense to report them at market values.
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Paola
6 days ago
I'm pretty sure the answer is C) trading securities. That's when the bonds are held for trading purposes, not for long-term investment.
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Allene
11 days ago
I think the answer is C) trading securities.
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