The Ratio of the Average Yield on 10 Top-Rated Corporate

question 38

Multiple Choice

The ratio of the average yield on 10 top-rated corporate bonds to the average yield on 10 intermediate-grade bonds is called the __________.

• A) bond price index
• B) confidence index
• C) relative strength index
• D) trin ratio

---

Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected to be uncollectible.

Merchandise Return

The process of returning purchased goods to the seller, typically due to defects, dissatisfaction, or other reasons.

Full Payment

The act of paying the entire amount due on an obligation, such as an invoice or loan, without any outstanding balance.

Promissory Note

A financial instrument involving a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.