The Actual Return on a Bond Is Dependent Upon Which

question 48

Multiple Choice

The actual return on a bond is dependent upon which of the following?
I. the coupon rate
II. whether the bond defaults or not
III. any changes in par value
IV. any changes in market price

• A) I, II and III only
• B) II, III and IV only
• C) I, III and IV only
• D) I, II and IV only

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service and are a significant portion of the production cost.

Standard Quantity

The expected amount of materials or inputs required to produce a unit of product under normal operating conditions.

Direct Materials Quantity Variance

The variance between the real amount of direct materials consumed during manufacturing and the anticipated standard amount.

Standard Materials Quantity

The expected amount of materials that should be used for the production of a certain number of units, as set by a company's standards.