Which One of the Following Statements Is Correct Concerning Macaulay

question 99

Multiple Choice

Which one of the following statements is correct concerning Macaulay duration?

• A)The duration of a zero coupon bond is equal to the time to maturity.
• B)Most bonds have durations in excess of 15 years.
• C)The duration of a coupon bond is a linear function between the time to maturity and the duration.
• D)The duration of a coupon bond is greater than that of a zero coupon bond given equal maturity dates.
• E)The percentage change in a bond's price is approximately equal to the change in the yield to maturity multiplied by (−1 × Macaulay duration).

Distinguish between different methods of accounting for investments (cost and equity method).

Recognize and measure goodwill and its impairment in a business combination.

Prepare and understand a condensed consolidated statement of financial position.

Understand and apply adjustments for fair value increments and their depreciation/amortization impact on consolidation.

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Definitions:

Robinson-Patman Act

A United States federal law aimed at preventing anticompetitive practices by producers, specifically price discrimination.

Antitrust Laws

Legislation designed to prevent monopolies and promote competition among businesses, ensuring fair market practices.

Anti-Chain-Store Act

Legislation aimed at limiting or regulating the expansion and operation of chain stores to protect local businesses and maintain market competition.

Indirect Price Discrimination

A pricing strategy where different prices are charged for the same product or service based on characteristics other than the customer's willingness to pay.