Which One of the Following Statements Is NOT True

question 78

Multiple Choice

Which one of the following statements is NOT true?

• A) The realized yield is the return earned on a bond given the cash flows actually received by the investor.
• B) The realized yield is equal to the yield to maturity even if the bond is sold prior to maturity.
• C) It is the interest rate at which the present value of the actual cash flows generated by the investment equals the bond's price at the time of sale of the bond.
• D) All of the above are true.

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Definitions:

Standard Hours

The amount of time expected to complete a task or a project under normal conditions.

Budget Variance

The difference between what was budgeted or planned for an operation and what actually occurred.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain relatively constant regardless of the level of production, including salaries of managers and depreciation of factory equipment.

Work in Process

Materials and goods partially completed during the production process; inventory that is in-between raw materials and finished goods.