Question
A superannuation fund invests in a six-month maturity commercial paper issued by Aussie Finance, a finance company. Aussie Finance uses the funds to invest in
A superannuation fund invests in a six-month maturity commercial paper issued by Aussie Finance, a finance company. Aussie Finance uses the funds to invest in a six-year maturity corporate bond issued by an oil company who plans to buy a new drill. Assume that all parties held instruments until maturity and that all instruments were issued at their face value. At the time of the corporate bonds redemption, which of the following is NOT correct?
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The Superannuations balance sheet size is unaffected.
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The DSUs bank deposits decrease
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The superannuation fund receives bank deposits II
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The corporate bond is removed from the Aussies balance sheet
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The DSUs balance sheet contracts
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