When Using Financial Ratios, the Most Important Comparisons Are to Those

question 89

True/False

When using financial ratios, the most important comparisons are to those of previous years for the company and to industry averages or similar companies for the same year.

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Definitions:

Zero-Coupon

A type of bond that does not pay periodic interest payments and is instead sold at a discount to its face value, with the full face value received by the holder at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, taking into account its current market price, face value, interest payments, and time to maturity.

Duration

A measure of the sensitivity of a bond's or fixed income portfolio's price to changes in interest rates, expressed in years.