A Bond's Call Feature May Be Exercised If

question 30

Multiple Choice

A bond's call feature may be exercised if
1. the yield to maturity exceeds the current yield
2. the yield to maturity is less than the current yield
3. interest rates have risen
4. interest rates have fallen

• A)1 and 3
• B)1 and 4
• C)2 and 3
• D)2 and 4

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Nonsufficient Funds (NSF)

A situation where a bank account does not have enough money to cover a presented check or withdrawal request.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement.

Ending Bank Statement Balance

The final balance on a bank statement at the end of a given period, reflecting all transactions that occurred during that time.