Answer: B) Conservative Financial Policy
Explanation:
A Conservative Financial policy refers to a situation where an entity usually finances their permanent working capital with long term debt in part or in it's entirety.
It is stated that Bradford Maintainance uses long-term sources of funds to finance its assets which would point to a Conservative Financial Policy.
Based on the scenario above, it is likely that Professor
Plum’s salary that is considered to be at its highest was at 1970 whereas the
lowest was during the 1990 and this could be based from CPI in which will
evaluate his salary from where it became highest and lowest.
Answer:
D.The yield-to-maturity is less than the coupon rate.
Explanation:
Whenever the yield to maturity is less than the bond's coupon rate, bond market value is greater than par value ( premium bond), these applies just as the question states that the premium bond pays $60 in interest annually in seven years and the bond was issued originally 3 years ago at par
in other cases when a bond's coupon rate is less than its yield to maturity, then the bond is selling at a discount and when a bond's coupon rate is equal to its yield to maturity. the bond is selling at par.
