LYONs Are Bonds That Are

question 43

Multiple Choice

LYONs are bonds that are
I.callable;
II.puttable;
III.convertible;
IV.zero-coupon

• A)I and II only
• B)I, II, and III
• C)I, II, III, and IV
• D)II, III, and IV

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Definitions:

Optimal Initial Cash Balance

The ideal amount of money a business should hold at the start to minimize costs while avoiding liquidity issues.

Cash Outflow

The movement of money out of a business or financial account, typically as payment for expenses, assets, or liabilities.

Fixed Cost

A business expense that does not vary with the level of goods or services produced over the short term.

Interest Rate

The rate, expressed as a percentage of the principal amount, that a borrower must pay to a lender to use their assets.