If You Sell This Bond Now,the Internal Rate of Return

question 108

Multiple Choice

If you sell this bond now,the internal rate of return you will earn on your investment will be closest to:

• A)5.0%
• B)5.6%
• C)6.0%
• D)8.0%

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Definitions:

Labor Rate Variance

The difference between the actual labor rate paid and the standard labor rate expected, indicating over or underpayment.

Budget Variance

The difference between the budgeted amount of expense or revenue, and the actual amount of expense or revenue incurred.

Volume Variance

The difference between the budgeted fixed overhead and the applied fixed overhead, which is usually driven by a difference in actual production volume and the expected production volume.

Materials Price Variance

The variance between the real expense of materials and their anticipated (standard) price.