Anil Buys a Bond in the Amount of $2,000 with a Promised

question 46

Multiple Choice

Anil buys a bond in the amount of $2,000 with a promised interest rate of 17 percent.If the market interest rate increases to 27 percent,Anil can sell his bond for up to

• A)$1,259.26.
• B)$540.00.
• C)$7,407.00.
• D)$11,764.71.

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Definitions:

Activity Base

A measure used for allocating fixed costs to products or services, based on the activities that drive costs, such as machine hours or labor hours.

Number of Computers

The total count of computing devices within a specific environment or organization.

Divisional Income

The earnings generated by distinct business units or divisions within a corporation, used to assess their individual performance.

Service Department Expenses

Costs associated with departments that support the production or operation of a company but do not directly produce goods or services, such as maintenance and human resources.