The Best Method for an Investor to Guarantee Higher Interest

question 12

Multiple Choice

The best method for an investor to guarantee higher interest rates would be to purchase a bond which has a _____ coupon and a _____ term to maturity.

• A) low, short
• B) low, long
• C) high, short
• D) zero, very long

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Definitions:

Retained Earnings Activities

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested into the business or kept as a reserve.

Operating Revenue

Income earned from a company's core business operations, excluding revenue from non-operating sources like investments.

Operating Activities

Involves the primary revenue-generating activities of an organization, such as sales and services, as reflected in its cash flow.

Selling Merchandise

The process of offering goods for sale to customers, often in a retail setting, which constitutes the primary revenue-generating activity of merchandising companies.