A Characteristic Common to Banks,utilities,and Transportation Is That They

question 42

Multiple Choice

A characteristic common to banks,utilities,and transportation is that they:

• A)are all government owned.
• B)are not subject to the rules of the FASB.
• C)are monopolies.
• D)each have a uniform system of accounts established by a federal regulatory agency.
• E)never go bankrupt.

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Definitions:

Investment Horizon

Investment horizon refers to the total length of time an investor expects to hold an investment or portfolio before liquidating it.

Promised Yield

The return a bond issuer commits to pay to bondholders, usually expressed as an annual percentage.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, indicating the percentage change in price for a one percent change in yield.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date.