If you are holding a premium bond, you must expect a _______ each year until maturity. If you are holding a discount bond, you must expect a _______ each year until maturity. (In each case assume that the yield to maturity remains stable over time.)

A. capital gain; capital loss
B. capital gain; capital gain
C. capital loss; capital gain
D. capital loss; capital loss


C. capital loss; capital gain

Business

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Porter Co. is analyzing two potential investments. Project XProject YCost of machine$68,000 $60,000 Net cash flow:      Year 1 24,000  4,000 Year 2 24,000  26,000 Year 3 24,000  26,000 Year 4 0  20,000  The payback period in years for Project X is:

A. 3.83. B. 3.50. C. 4.00. D. 2.83. E. 2.00.

Business

With an installment contract, a buyer or lessee can reject a single installment on any pretext

Indicate whether the statement is true or false

Business

Individuals and households frequently purchase capital market securities through financial institutions such as

A) mutual funds. B) pension funds. C) money market mutual funds. D) all of the above. E) only A and B of the above.

Business

The World Intellectual Property Organization:

a. helps reduce the cost of getting broad patent protection b. protects intellectual property based on a recent treaty c. helps to standardize patent protection globally d. none of the other choices e. all of the other specific choices are correct

Business