Which of the Following Is NOT a Feature of Euro

question 43

Multiple Choice

Which of the following is NOT a feature of euro floating rate notes (FRNs) ?

• A) The coupon rates are usually reset every 6 months.
• B) FRNs are bearer securities.
• C) Many have a call option that gives the investor the right to sell the bond back to the issuer prior to maturity.
• D) An FRN issue is usually about USD 100 million.

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Definitions:

First-In, First-Out

A rephrased definition: An accounting method used to value inventory and calculate cost of goods sold, assuming the earliest goods purchased are the first to be sold.

Conversion Costs

Conversion costs are the costs required to convert raw materials into finished products, including labor and overhead.

Factory Overhead

Expenses related to the operation of a manufacturing plant that are not directly tied to a specific product, including utilities, depreciation, and facility maintenance.

Direct Labor

Costs attributed to the work performed by employees who directly contribute to the manufacturing or production of goods, such as wages of assembly line workers.