Question
Unisuperfund invests in asix-month maturitycommercial paper issued by Qld Finance, a finance company.Qld Finance uses the funds to invest in a six-year maturity corporate bond
Unisuperfund invests in asix-month maturitycommercial paper issued by Qld Finance, a finance company.Qld 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 allpartiesheld instruments until maturity and that all instruments were issued at their face value.
At the time of the corporate bond'sredemption,which of the followingisNOTcorrect?
A.The corporate bond is removed from QldFinance's balance sheet.
B.Unisuper fund receives bank deposits.
C.The DSU'sbalance sheet contracts.
D.The DSU's bank deposits decrease.
E.Unisuper fund'sbalance sheet size is unaffected.
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