Which of the Following Is Applicable to Corporate Bonds in the United

question 17

Multiple Choice

Which of the following is applicable to corporate bonds in the United States?

• A)Actual/360
• B)Actual/Actual
• C)30/360
• D)Actual/365

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Definitions:

Return On Investment (ROI)

Net operating income divided by average operating assets. It also equals margin multiplied by turnover.

Depreciation

The systematic allocation of the cost of an asset over its useful life.

Investment Center

A business unit within a company that is responsible for its own revenues, expenses, and asset investments, with its performance measured by its ability to generate income relative to its assets.

Minimum Required Return

The lowest acceptable return on an investment, based on risk tolerance and financial goals.