On a Reset Date,floating-Rate Notes

question 77

Multiple Choice

On a reset date,floating-rate notes

• A)experience very volatile price changes.
• B)market price will usually gravitate toward par.
• C)market price will usually gravitate toward par,unless the borrowers' credit rating has declined.
• D)none of the options

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Definitions:

Net Income

The net income of a company once all costs and taxes are subtracted from its revenues.

Overstatement

The exaggeration of income, assets, or worth in financial reporting.

Freight-out Costs

Expenses associated with the delivery of merchandise from a seller to a buyer; also known as shipping costs or delivery expenses.

Inventory

Inventory represents the goods and materials a business holds for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.