The Following Information for a Bond Having No Expiration Date

question 95

Multiple Choice

The following information for a bond having no expiration date: bond price = $1,000;bond fixed annual interest payment = $100;bond annual interest rate = 10 percent.
-Refer to the above information.If the price of this bond falls by $200,the interest rate in effect will:

• A) rise by 2.5 percentage points.
• B) rise by 5 percentage points.
• C) fall by 2.5 percentage points.
• D) fall by 5 percentage points.

Understand the distinction between cost centers, profit centers, and investment centers.

Identify direct and indirect expenses and understand their treatment in departmental costing.

Comprehend the concepts of controllable and uncontrollable costs.

Grasp the basics of departmental income statements and the allocation of expenses.

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