What Is Your Acceleration If You Go from 0 to 60

question 14

Multiple Choice

What is your acceleration if you go from 0 to 60 mph in 4 seconds?

• A) 60 mph/s
• B) 30 mph/s
• C) 15 mph/s
• D) 8.5 mph/s
• E) 240 mph/s

---

Definitions:

Future Cash Flows

Future cash flows refer to the estimated amount of money that is expected to be received or paid out by a company in future periods.

Sinking Fund

Facilitates the orderly retirement of a bond issue. This can be achieved in one of two ways: the company can call in for redemption (at par value) a certain percentage of bonds each year or the company may buy the required amount of bonds on the open market.

Equilibrium

The condition under which the intrinsic value of a security is equal to its price; also, its expected return is equal to its required return.

Yield Curve

The curve that results when the yield to maturity is plotted on the y-axis with term to maturity on the x-axis.