The Market Value (Present Value) of a Bond Is a Function

question 48

Multiple Choice

The market value (present value) of a bond is a function of all of the following except the

• A) dollar amounts to be received.
• B) length of time until the amounts are received.
• C) market rate of interest.
• D) length of time until the bond is sold.

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Definitions:

Fixed Overhead Budget

A fixed overhead budget outlines the expected costs of fixed overheads, such as salaries and rent, that are not influenced by changes in production volume.

Volume Variance

The difference between the planned volume of output and the actual volume of output, which affects costs.

Fixed Manufacturing Overhead

Indirect manufacturing costs that do not vary with the level of production, including salaries of production supervisors, rent for the factory building, and depreciation of manufacturing equipment.

Volume Variance

A financial metric that measures the difference between the planned volume of production or sales and the actual volume, affecting revenue and costs.