What is the reason for a low rated security to generate a high yield to maturity?
What will be an ideal response?
Riskier bonds have higher interest rates, to compensate investors for taking the additional risk. Therefore, in order to attract investors to take additional risk by investing in low-rated securities, these securities have comparatively higher interest rates, or yield to maturity.
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Answer the following statements true (T) or false (F)
1. In a bank reconciliation, a book error will be shown on the bank side of the reconciliation. 2. In a bank reconciliation, outstanding checks will be shown on the bank side of the reconciliation. 3. In a bank reconciliation, a deposit in transit will be shown on the bank side of the reconciliation. 4. The cash balance in a companys general ledger and the company's bank balance on the bank statement will always be the same. 5. On a bank reconciliation, deposits in transit are added on the bank side of the reconciliation.
Suppose that the objective function coefficient for product C increases by $8. What impact will this have on the current values of the optimal solution?
A) No change. B) Current solution will change. C) Solution will become infeasible. D) Solution will become unbounded. E) Not enough information is provided.
InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This regrouping activity is called
A. assorting. B. bulk-breaking. C. wholesaling. D. accumulating. E. sorting.
Each month the sales staff of Capital Plumbing Supplies, Inc., makes an average of 125 sales calls on prospective customers at a cost of about $3,500 (salary plus expenses). What is the average cost of a sales call (to the nearest dollar amount)?
A. $22 B. $31 C. $25 D. $28 E. $34