Jill Buys $775 of Merchandise on Account from Toys Are

question 100

Multiple Choice

Jill buys $775 of merchandise on account from Toys Are Fun. Her customer terms are 3/10, n/45. What is the amount of her discount if she pays within the discount period?

• A) $77.50.
• B) $23.25
• C) $697.50.
• D) $0. 00.

---

Definitions:

Current Yield

This term denotes the annual income (interest or dividends) divided by the current price of the security, often used in reference to bonds.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is often different from its market value.

Call Feature

A provision in a bond or other fixed-income security that allows the issuer to repurchase and retire its bonds before they reach their specified maturity date.

Coupon Rate

The annual interest rate paid by a bond's issuer to its holders, expressed as a percentage of the bond's face value.