Which of the following statements concerning equipment trust certificates are correct?
I. Equipment trust certificates are typically used to raise funds for purchasing airplanes and railroad engines.
II. Equipment trust certificates are usually issued with a single maturity date.
III. Equipment trust certificates normally mature in 20 to 30 years.
IV. Equipment trust certificates generally offer above-average yields.
A) I and IV only
B) II and IV only
C) I and III only
D) I, III and IV only

Question

Quizplus · Accepted Answer

Equipment trust certificates are often used by transportation companies, such as airlines and railroads, to finance equipment purchases, offering higher yields due to their secured nature. They do not usually have a single maturity date; instead, they have a series of dates as the principal is paid down over time, and their maturity period is typically shorter than 20 to 30 years.

Which of the Following Statements Concerning Equipment Trust Certificates Are