What Is the Current Ratio If the Short-Term Asset Balance

question 38

Multiple Choice

What is the current ratio if the short-term asset balance is $15,000,000 and the short-term liabilities balance is $500,000?

• A) 33%
• B) 30%
• C) 300%
• D) 1/3

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Definitions:

Convexity

A measure of the curvature in the relationship between bond prices and yield, indicating how the duration of a bond changes as interest rates change.

Duration Predictions

Predictions about the length of time it will take for the price of a bond to be repaid by its internal cash flows.

Yield Falls

A situation where the yields on bonds decrease, which typically occurs when bond prices increase.

Convexity

A measure of the curvature or the degree of the curve in the relationship between bond prices and bond yields.