Assuming That a = 1, B = 2, and C

question 4

Multiple Choice

Assuming that a = 1, b = 2, and c = 3, which of the following expressions is true?

• A) both a < b and c < b
• B) either a > b or b > c, or both
• C) both b > a and b < c
• D) either a == b or b == c, or both
• E) None of these

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.

Contract Rate

The predetermined fee or rate agreed upon in a contract for services rendered or goods sold.

Bonds

Long-term debt securities issued by corporations or governments to raise capital, paying interest to holders.

Premium

A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par to record the premium received.