Which of the Following Statements Is True of a Bond

question 20

Multiple Choice

Which of the following statements is true of a bond?

• A) The maturity value of a bond is always more than the market value of the bond.
• B) Interest payments increase throughout the duration of a bond.
• C) The maturity date of a bond is contractually fixed.
• D) The call provision of a bond is exercised in the last year of the bond.
• E) The market value of a bond is mentioned in the bond indenture.

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Definitions:

Efficiency Variance

The difference between the actual input used to produce a good or service and the standard input expected, used to measure performance.

Fixed Manufacturing Overhead

Costs in the manufacturing process that do not change with the level of production, such as rent, salaries, and depreciation.

Budget Variance

The difference between what was budgeted for and what was actually spent or received.

Volume Variance

The difference between the planned level of production volume and the actual production volume, often relating to overhead costs.