Which One of the Following Bonds Is the Least Sensitive

question 29

Multiple Choice

Which one of the following bonds is the least sensitive to interest rate risk?

• A) 3-year; 4 percent coupon
• B) 3-year; 6 percent coupon
• C) 5-year; 6 percent coupon
• D) 7-year; 6 percent coupon
• E) 7-year; 4 percent coupon

Distinguish between spending and activity variances.

Evaluate employee wages and salaries management in budgeting.

Grasp the concept of planning budget and its importance in financial forecasting.

Understand the concept of a static planning budget and its role in performance evaluation.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them ownership interests in the company.

Quorum

The minimum number of members required to be present at a meeting to legally conduct business.

Supermajority Requirement

A rule that requires a higher than simple majority vote, often used in legislative bodies or for corporate decisions.

Revised Act

Legislation that has been updated or amended to incorporate new information, correct errors, or reflect changes in policy.