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Q: What type of bond carries the least amount of risk?
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Order the bond types below from lowest to highest risk of default?

There are no bond types below your question; It is impossible to answer your question.


What is surety bonds?

A surety bond is a contract among at least three parties:The principal - the primary party who will be performing a contractual obligationThe obligee - the party who is the recipient of the obligation, andThe surety - who ensures that the principal's obligations will be performed.Through this agreement, the surety agrees to uphold - for the benefit of the obligee - the contractual promises (obligations) made by the principal if the principal fails to uphold its promises to the obligee. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal.There are two main categories of bond types: contract bonds and commercial bonds. Contract bonds guarantee a specific contract. Examples include performance, bid, supply, maintenance and subdivision bonds. Commercial bonds guarantee per the terms of the bond form. Examples include license & permit, union bonds, etc.Suretyship bonds originated hundreds of years ago as a mechanism through which trade over long distance could be encouraged. They are frequently used in the construction industry: in order to obtain a contract to build the project, the general contractor (and often the sub-contractors as well) must provide the owner a bond for its performance of the terms of the contract. Conversely, owners and contractors may also provide payment bonds to ensure that subcontractors and suppliers are paid for work done.Under the Miller Act, payment and performance bonds arerequired for general contractors on all U.S. federal government construction projects where the contract price exceeds $100,000.00.Surety bonds are also used in other situations, for example, to secure the proper performance of fiduciary duties by persons in positions of private or public trust.A key term in nearly every surety bond is the penal sum. This is a specified amount of money which is the maximum amount that the surety will be required to pay in the event of the principal's default. This allows the surety to assess the risk involved in giving the bond; the premium charged is determined accordingly.If the principal defaults and the surety turns out to beinsolvent, the purpose of the bond is rendered nugatory. Thus, the surety on a bond is usually an insurance company whose solvency is verified by private audit, governmental regulation, or both.The principal will pay a premium (usually annually) in exchange for the bonding company's financial strength to extend surety credit. In the event of a claim, the surety will investigate it. If it turns out to be a valid claim, the surety will pay it and then turn to the principal for reimbursement of the amount paid on the claim and any legal fees incurred.A bail bond is a type of surety bond used to secure the release from custody of a person charged with a criminal offense. Under such a contract, the principal is the accused, the obligee is the government, and the surety is the bail bondsman.Examples of Surety Bonds:Contractor License and PermitCourtCustomsLost SecuritiesMoney TransmittersMortgage brokersMotor Vehicle DealersPatient Trust FundsProbatePublic officialTax bondsTelemarketingSubdivisionUtility depositWage and Welfare/Fringe Benefit (Union)Public WarehouseSupply bonds Online Transaction Supply BondsSelf--Insured Workers compensationInsurance Company QualifyingReclamation


Why are increased phosporous levels dangerous?

Phosphorous is a highly flamable element. When it is introduced with oxygen, it combusts. The larger the amount of phosphorous, the higher the risk of it catching on fire. Although, this is in fact that is a pure substance of phosphorous...


What are the main side effects of methionine?

Methionine, which is usually prescribed as a cleansing agent, carries a lower then average risk of adverse side effects. However, when side effects do occur, the most common are a feeling of nausea, drowsiness and vomiting. If other side effect occur, it would be wise to contact a physician immediately.


What is contrast systematic and unsystematic risk?

Contrast Systematic and Unsystematic risk

Related questions

Which type of bond carries the least amount of risk?

US Treasury bonds are often considered the least risky type of bond because they are backed by the full faith and credit of the US government. This means that there is a very low risk of default when investing in US Treasury bonds.


Which investment type typically carries the least risk?

Real Estate for Consumer Purchases All around, Money Markets are Lowest Risk


What are normal bail bond charges?

Bailbondsmen USUALLY charge 10% of the bond amount that they have to put at risk. Depending on the seriousness of the offense, or the flight risk of the individual, they can charge more for their services.


What is a bounty hunters salary?

Bounty Hunters are hired by Bail and Surety Bond companies. Their pay is negotiated but is usually 10 percent of the bond amount that is at risk.


What is considered to be the least important variable associated with the relative risk of the squat?

Amount of resistance


Does a stock or bond represent more risk to the company?

A share is more of a risk than a bond.


Will my husband's bond get lowered from 125.000 to a reasonable amount?

If your husband's bond is that high, either he did something outrageous (but not quite outrageous enough to get denied bond altogether) or they consider him a flight risk. Therefore, getting it lowered isn't likely.


A pelvic ultrasound carries what risk?

There are no known risks, to either the mother or the fetus, associated with the use of ultrasound.


Can bond ratings be used as a measure of the bond's risk?

Yes OR true


Why would you check the rating of a bond?

There are two complimentary reasons to check a bond's rating. If you're a risk-averse investor, checking a bond's rating indicates the bond's risk of default. These guys look for "investment grade" bonds. If you're an aggressive investor, risk equals reward: the worse a bond is, the more it pays.


Was the amount of compensation for a on the job lower back injury?

which of the following occupations poses the least amount of risk for lower-back pain injury quality control inspector heavy-equipment opertator truck driver computer programmer


How does the risk or return ratio of a government bond compare with that of other types of investments?

The risk of a government bond is minimal, though the return from the government bond is very low compared to other lucrative bonds available in the market.When you opt for more return, there is more risk. Whereas though in government bond, the return is low, your investment is well secured and risk ratio is almost nil.