Riverview Chemical Recently Issued Some Debt That Had an Original

question 81

Multiple Choice

Riverview Chemical recently issued some debt that had an original maturity of nine months. This debt is best classified as a(n) :

• A)option contract.
• B)money market instrument.
• C)fixed-income security.
• D)derivative security.
• E)futures contract.

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Definitions:

Cost-Oriented

A pricing strategy where the price of a product or service is determined by adding a profit margin to its production cost.

Profit-Oriented

Focused on achieving financial gain or maximizing profits as the primary goal of business operations.

Cost-Plus-Fixed-Fee Pricing

A pricing strategy where the selling price is determined by adding a fixed fee to the cost of the product or service, covering both the cost and a guaranteed profit margin.

Target Return

A specific profit objective set by a business, often used to guide pricing and investment strategies to meet financial goals.