Which of the Following Sections from the Statement of Cash

question 49

Multiple Choice

Which of the following sections from the statement of cash flows includes activities that increase and decrease long-term assets?

• A) The financing section
• B) The operating section
• C) The investing section
• D) The noncash investing and financing section

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Definitions:

Duration

Measures the sensitivity of a bond's price to changes in interest rates, calculated as a weighted average of the times until the bond's cash flows are received.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all interest payments and the repayment of principal.

Coupon Rate

The interest rate that a bond issuer will pay to a bondholder, typically expressed as an annual percentage of the bond's face value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, usually expressed in years.