Correct Answer:
B. The internal rate of return earned if the bond is held to maturity
YTM discounts all promised coupons and the principal to the current price.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
The yield to maturity (YTM) of a bond is:
Related MCQs
The principal budget factor is:
A.
The factor that limits the activities of an organization
B.
The largest expense
C.
The total of sales
D.
The profit target
Correct answer is:
A. The factor that limits the activities of an organization
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A by-product is a product that:
A.
Has the greatest sales value of all products
B.
Is produced after the split-off by choice
C.
Cannot be sold
D.
Has a relatively minor sales value compared with the main product
Correct answer is:
D. Has a relatively minor sales value compared with the main product
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A disclaimer of opinion is given when the auditor:
A.
Cannot obtain sufficient appropriate audit evidence and the possible effects are material and pervasive
B.
Finds that the financial statements are fairly presented
C.
Wants to avoid doing the audit work
D.
Finds minor errors in the cash book
Correct answer is:
A. Cannot obtain sufficient appropriate audit evidence and the possible effects are material and pervasive
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In process costing, the weighted average method:
A.
Keeps opening WIP costs separate from current costs
B.
Ignores opening WIP
C.
Ignores current period costs
D.
Combines the cost of opening WIP with current period costs
Correct answer is:
D. Combines the cost of opening WIP with current period costs
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Sensitivity analysis in capital budgeting examines:
A.
Only the best case scenario
B.
Past performance of the firm
C.
How changes in one input variable affect the project's NPV
D.
The effect of tax rates on dividends
Correct answer is:
C. How changes in one input variable affect the project's NPV
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Under the accrual basis of accounting in the public sector, transactions are recognized when:
A.
Cash is received only
B.
Cash is paid only
C.
They occur, regardless of when cash is received or paid
D.
The budget is approved
Correct answer is:
C. They occur, regardless of when cash is received or paid
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