Which One of the Following Is Classified as a Fixed-Income

question 7

Multiple Choice

Which one of the following is classified as a fixed-income security?

• A)U.S. Treasury bill
• B)6-month municipal bond
• C)common stock that pays regular quarterly dividends
• D)2-year U.S. Treasury security
• E)9-month bank certificate of deposit

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Definitions:

Mixed Cost

Expenses that have both fixed and variable components, changing partially in response to an alteration in business activity level.

High-low Method

A method applied within cost accounting that helps in determining fixed and variable expenses by examining the highest and lowest activity levels.

Least-squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed values and the values predicted by the model.

Cost Formula

A formula designed to estimate expenses across various activity ranges, including both fixed and variable cost elements.