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NEW QUESTION: 1
A. Option B
B. Option E
C. Option C
D. Option A
E. Option D
Answer: B,C
NEW QUESTION: 2
The price volatility of a variable rate note may be reduced by:
A. resetting the coupon rate more frequently.
B. eliminating any put features.
C. reducing the size of the issue or downgrading the quality rating.
Answer: A
NEW QUESTION: 3
If a company has a higher percentage of employees with fixed compensation than variable compensation,
what happens as revenues increase?
A. Compensation costs eventually stabilize and become a consistent percent of revenue.
B. Compensation costs remain the same as a percent of revenue until variable compensation costs
exceed fixed compensation costs.
C. Compensation costs eventually decrease as a percent of revenue, increasing profit growth.
D. Compensation costs and revenue increase at approximately the same rate.
Answer: C
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