And thus exclude as a part of operating income from

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and thus exclude ________ as a part of operating income from the income statement. cash flow dividends interest expense earnings
Question 5 You have purchased a Treasury bond that will pay $10,000 to your newborn child in 15 years. If this bond is discounted at a rate of
3.875% per year, what is today's price (present value) for this bond?
Question 6 What type of loan requires both principal and interest payments as you go, making equal payments each period?
Question 7 APRs must be converted to the appropriate periodic rates when compounding is:
Question 8 The appropriate rate to use to discount the cash flows of a bond in order to determine the current price is the: yield to maturity coupon rate par rate current yield
Question 9 Bonds are different from stocks because:
Question 10 Robert invested in stock and received a positive return over a nine- month period. Which of the following types of returns will be greater?
Effective annual return (EAR) Annual percentage rate (APR) There is not enough information to make a definitive choice.

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