If the Rate of Interest on Bonds Is Lower That

question 46

Multiple Choice

If the rate of interest on bonds is lower that the current market rate, the bonds will sell at

• A) a discount.
• B) a premium.
• C) face value.
• D) maturity value.

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Definitions:

Insourcing

The practice of using a company’s internal employees or other resources to accomplish a task.

Just-In-Time

An inventory management strategy that increases efficiency and decreases waste by receiving goods only as they are needed in the production process, reducing inventory costs.

Import Duties

Taxes imposed by a government on goods imported from other countries, meant to protect domestic industries and generate revenue.

Global Procurement

The process of sourcing goods and services from the global market to exploit global efficiencies such as lower cost, enhanced quality, and better supply dynamics.