The Market Prices of Existing Bonds Are

question 278

Multiple Choice

The market prices of existing bonds are

• A) not related to the interest rate.
• B) directly related to the interest rate.
• C) inversely related to the interest rate.
• D) stated in terms of the interest rate.

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Definitions:

Merchandise Inventory

The total value of a company's goods that are ready for sale at any given time, including both finished goods and goods in various stages of production.

Consigned Goods

Items that are sent by their manufacturer to a third party, but still remain the property of the manufacturer until sold.

Goods in Transit

Items that have been shipped by a seller but have not yet been received by the buyer.

Days' Sales in Inventory

A measure of how quickly inventory is sold and replaced over a period, calculated by dividing the ending inventory by the cost of goods sold and multiplying by 365.