A Floating-Rate Bond Frequently Has A

question 71

Multiple Choice

A floating-rate bond frequently has a:

• A)flexible deferred call period.
• B)fixed yield to maturity but a flexible coupon payment.
• C)government guarantee.
• D)fixed-dollar obligation.
• E)put provision.

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Definitions:

Excess Capacity

A situation where a company can produce more goods or provide more services than currently demanded, indicating unused productive potential.

Special Order

A one-time customer order often involving a large quantity and requiring a separate pricing or product specification arrangement.

Special Order Price

The price charged for a product or service that is outside the company's normal scope of work or products; often tailored pricing for a specific customer request.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost calculation, contrasting with absorption costing that also includes fixed costs.