An Example of a Liquidity Ratio Is ______

question 21

Multiple Choice

An example of a liquidity ratio is ______.

• A) fixed asset turnover
• B) current ratio
• C) acid test or quick ratio
• D) a and c
• E) b and c

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Definitions:

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often used to assess interest rate risk.

Coupon Rate

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

Duration

Measures the sensitivity of a bond's price to changes in interest rates, calculated as a weighted average of the times until the bond's cash flows are received.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all interest payments and the repayment of principal.