ANSWER : a : GOVERNMENT BOND THAT MATURES IN FOUR MONTHS
CASH EQUIVALENT IS HIGHLY LIQUID INVESTMENT WITH A MATURITY OF 3 MONTHS OR LESS (THUMBS UP PLEASE)
Which of the following is NOT a cash equivalent? Select one: a. A government bond that...
Which of the following is not considered a cash equivalent? Select one: a. Accounts receivable. b. Money market funds. c. Treasury bills. d. High-grade commercial paper. 6
Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows? Select one: a. acquiring of treasury stock b. issuing long-term debt c. declaring stock dividends d. retiring of bond payable A five-year bond was issued at par for $640,000 cash. This transaction should be shown on a statement of cash flows under Select one: a. noncash activities b. operating activities c. financing activities d. investing activities Which of the following...
1. The following table provides zero coupon bond yields. Maturity Bond equivalent yield 6 months 6% 1 year 8% A 12% coupon bond with coupons paid semiannually matures in one year. The par value of the bond is $1,000. What is the price of this bond? [First identify the cash flows.] A. $1,030 B. $1,032 C. $1,034 D. $1,038 2. The following are the prices of zero coupon bonds. Par value is $1,000 in each case. Maturity Price 6 months...
Which of the following individuals would be considered unemployed by the official government definition? Select one: O a. George, a mathematician, who returned to graduate school after failing to find a job the last four months b. Gwen, a medical student, who is still in college and is not working c. Morgan, who is employed part-time but desires a full-time job d. Ralph, an auto worker vacationing in Florida during a layoff at a General Motors plant O
Which of the following bonds will have the lowest interest rate? a. a new start-up company selling inexpensive at-home COVID-19 tests. b. The city government of Kansas City. c. A U.S. Treasury Bond that matures in 2025. d. A U.S. Treasury Bond that matures in 2030.
4.Which one of the following statements about the approach to bond pricing is NOT true? Select one: A. To calculate a bond's price, one needs to calculate the present value of the bond's expected cash flows. B. The value, or price, of any asset is the future value of its cash flows. 6.Which one of the following statements is NOT true? Select one: A. The yield to maturity of a bond is the discount rate that makes the present value...
Which of the following must be true regarding the bond described by the cash flow stream (-100, 5, 105)? (select all that apply) a) the bond is trading at par b) it is equivalent to the bond (-50, 3, 53) c) the coupon rate is 5% d) the yield on the bond is 5%
A statement of cash flows, including footnotes typically would not include which item? Select one: a. Capital stock issued at an amount greater than par value b. Issuance of stock in exchange for new equipme c. Cash dividends declared d. A purchase of treasury stock e. A building purchase mortgage obtained from
Which of the following cash flow streams represent bonds that are trading at par? (select all that apply) a) (-50, 2, 2, 50) b) (-100, 5, 5, 105) c) (-10, 1, 1, 12) d) (-20, 1, 1, 21) 9. Which of the following must be true regarding the bond described by the cash flow stream (-100, 5, 105)? (select all that apply) a) the bond is trading at par b) it is equivalent to the bond (-50, 3, 53) c)...
A statement of cash flows, including footnotes, typically would not include which item? Select one: a. Capital stock issued at an amount greater than par value b. Issuance of stock in exchange for new equipment c. Cash dividends paid d. A retirement of treasury stock e. A building purchase; mortgage obtained from financial institution