The Yield to Maturity Is The

question 97

Multiple Choice

The yield to maturity is the:

• A)discount rate that equates a bond's price with the present value of the bond's future cash flows.
• B)rate you will earn if your bond is called on the earliest possible date.
• C)rate computed by dividing the annual interest by the par value.
• D)rate used to compute the amount of each interest payment.
• E)rate computed as the annual interest divided by the market value.

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Definitions:

Variable Manufacturing Overhead

Manufacturing costs that vary in direct proportion to changes in production volume, such as utilities and indirect materials.

Machine-hours

A measure of production output based on the number of hours machines are operated within a given period.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard variable overhead assigned to the production based on the actual activity levels.

Total Variable Overhead Spending Variance

The overall difference between actual and budgeted variable overhead costs based on the changes in the level of activity.