The Average Rate of Return Earned on a Bond If

question 77

Multiple Choice

The average rate of return earned on a bond if it is held until the first call date is the:

• A) yield to call.
• B) yield to market.
• C) yield to principal price.
• D) yield to issue price.
• E) yield to discount.

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Definitions:

Adjusting Journal Entry

An accounting entry made in the books at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Supplies Account

An account used to track the cost of supplies consumed by a business during an accounting period.

Supplies Expense

encompasses the cost associated with items used in daily operations, not directly tied to the production of goods or services but necessary for conducting business.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use, representing its reduction in value over time.