Which One of the Following Is Defined as the Yield

question 17

Multiple Choice

Which one of the following is defined as the yield to maturity for a mortgage-backed security computed on an assumed prepayment pattern?

• A) payment yield
• B) assumed yield
• C) current yield
• D) cash flow yield
• E) amortized yield

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Definitions:

Service Firms

Companies that primarily provide intangible products or services to customers, such as consultancy, education, financial services, and healthcare.

Inventory

The total amount of goods and materials held by a company intended for sale or used in production.

Service Firms

Businesses that provide intangible products or services to consumers as opposed to tangible goods.

Activity Base

A measure used as a basis for allocating costs in activity-based costing; often related to the volume of activities driving costs.