The Present Value of a Bond Is Calculated by Discounting

question 35

Multiple Choice

The present value of a bond is calculated by discounting the future ________ to be received from the bond.

• A)coupon payments
• B)principal payment
• C)cash flows (coupon payments and principal payment)
• D)interest

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Definitions:

Overhead Assigned

The process of allocating indirect costs to specific cost objects, such as products or services, based on predetermined rates or bases.

Allocation Base

A criterion or standard used to distribute costs among multiple cost objects in a fair and systematic manner.

Plantwide Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, applied uniformly to all cost objects irrespective of the department in which they were produced.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process.