Which One of the Following Is Not a Characteristic of Firms

question 32

Multiple Choice

Which one of the following is not a characteristic of firms using yield management?

• A) ability to segment their market
• B) perishable inventory
• C) variable capacity
• D) product sold in advance

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Definitions:

Future Short Interest Rate

An estimation or prediction of the interest rates at a future point in time, often used in the valuation of interest rate derivatives.

Stripped Treasuries

Stripped Treasuries are US Treasury securities whose principal and interest payments have been separated to create two new securities, allowing investors to hold and trade the components separately.

Coupon Paying Treasuries

U.S. Treasury securities that offer periodic interest payments until maturity, at which point the face value is repaid to the holder.

Principal

The outstanding balance on a loan.