Which one of the following combination of features causes bond prices to be the most volatile?
A) low coupon, short maturity
B) high coupon, short maturity
C) low coupon, long maturity
D) high coupon, long maturity
Answer: C
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Which of the following is the best way for an auditor to determine that every name on a company's payroll is that of a bona fide employee presently on the job?
A. Examine employees' names listed on payroll accounting records. B. Visit the working areas and confirm with employees their badge or identification numbers. C. Make a surprise observation of the company's regular distribution of paychecks. D. Examine personnel records for accuracy and completeness.
Some organizations delegate quite a bit of authority to lower level managers in order to be more responsive to the customer. This type of business is ____________________.
Fill in the blank(s) with the appropriate word(s).
You intend to buy a vacation home in seven years and plan to have saved $50,000 for a down payment. How much money would you have to place today into an investment that earns 8% per year to have enough for your desired down payment?
A) $29,175 B) $29,100 C) $37,065 D) $25,000
Several companies have attempted to enter the U.S. market through establishing extremely low prices for their products (at times even less than the cost to manufacture them). This practice is known as ____________________.
Fill in the blank(s) with the appropriate word(s).