Which of the Following Risk-Free, Zero-Coupon Bonds Could Be Bought

question 7

Multiple Choice

Which of the following risk-free, zero-coupon bonds could be bought for the lowest price?

• A) one with a face value of $1,000, a YTM of 4.8%, and 5 years to maturity
• B) one with a face value of $1,000, a YTM of 3.2%, and 8 years to maturity
• C) one with a face value of $1,000, a YTM of 6.8%, and 10 years to maturity
• D) one with a face value of $1,000, a YTM of 5.9%, and 20 years to maturity

Analyze the use of lean, flexible, or adaptive strategies in responding to market demands.

Recognize the importance of effective metric selection for operations management.

Explain different types of manufacturing strategies and processes.

Understand the different types of flexibility strategies and their implications for operations management.

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Definitions:

Fixed Manufacturing Overhead

The sum of all consistent, non-variable costs associated with manufacturing, including salaries of supervisors and rent of the facility.

Job-Order Costing System

An accounting method that tracks the costs associated with producing a specific batch of products or a specific job.

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to products, calculated before the period begins based on estimated costs and activity levels.

Direct Labor-Hours

A measure used in accounting to allocate costs, referring to the total hours worked by employees directly involved in the manufacturing process.