Generally, Merchandise Is Sold on Credit Under Terms Such as 2/10

question 82

True/False

Generally, merchandise is sold on credit under terms such as 2/10, net 30, meaning the buyer may deduct 10% from the bill if he pays within 2 days or pay the full amount within thirty days.

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Definitions:

Investment Grade

A rating that indicates a municipal or corporate bond has a relatively low risk of default, making it an attractive investment option for risk-averse investors.

Yield to Call

The yield of a bond or note if you were to buy and hold the security until the call date.

Call Premium

The amount above the par value a bondholder receives if the issuer redeems a bond before its maturity date.

Semiannually

A term describing an action or event that occurs twice a year.