When pricing a zero-coupon bond, the convention is to use the semiannual pricing formula rather than the annual pricing formula

Indicate whether the statement is true or false.


Answer: TRUE

Business

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Executory costs

A) are included in the minimum lease payments by the lessee. B) should normally be borne by the party that is, in substance, the owner of the asset. C) are the costs incurred by the lessor that are directly associated with negotiating and completing the lease transaction. D) are always paid by the lessee.

Business

A shareholder's functions includes:

A. approval of loans taken by the corporation. B. approval of stock option plans for other shareholders. C. election of investors. D. approval of mergers or a voluntary dissolution.

Business

Paul McLaren holds the following portfolio: Stock Investment Beta A $150,000 1.40 B     50,000 0.80 C   100,000 1.00 D     75,000 1.20 Total $375,000  Paul plans to sell Stock A and replace it with Stock E, which has a beta of 0.75. By how much will the portfolio beta change?

A. ?0.190 B. ?0.211 C. ?0.234 D. ?0.260 E. ?0.286

Business

In order to begin exponential smoothing, a forecaster needs ______.

A. seasonal indices B. tracking signals C. the value of ? D. leading indicators

Business