Bond Yields Are

question 54

Multiple Choice

Bond yields are

• A) quoted as annual rates of return and assume the bond is purchased today at the stated price and sold one year from today.
• B) stated as a percentage of the maturity value and assume the bond is held to maturity.
• C) stated as an annual rate of return and assume the bond is purchased today and held until maturity.
• D) quoted as the average monthly rate of return and assume the bond is purchased today at the quoted price and held for twelve months.

---

Definitions:

Direct Method

A method of preparing the cash flow statement in which actual cash receipts and payments are reported directly for operating activities, without adjusting net income.

Service Department Costs

Expenses associated with departments that do not directly produce goods but provide essential support services to production departments.

Operating Departments

Departments within an organization that are directly involved in producing the company's goods or delivering services, as opposed to administrative departments.

Process Costing

A costing method used in industries where production is continuous and units are identical, assigning costs to units of product based on the process they go through.