Currently,the Bond Market Requires a Return of 11

question 84

Multiple Choice

Currently,the bond market requires a return of 11.6 percent on the 10-year bonds issued by Winston Industries.The 11.6 percent is referred to as which one of the following?

• A)coupon rate
• B)face rate
• C)call rate
• D)yield to maturity
• E)interest rate

---

Definitions:

Unsecured Non-priority Creditor

A creditor who does not have a claim on specific collateral and ranks below secured and priority creditors for repayment in case of debtor's bankruptcy.

Accounts Receivable

Represents money owed to a business by its customers for goods or services delivered or used but not yet paid for.

Liabilities With Priority

Obligations that have preference over others for repayment, often in the context of liquidation or bankruptcy proceedings.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or completion.