Increasing your company short-term cash position

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Reference no: EM132002060

1. A zero coupon bond:

A. is sold at a large premium.

B. has a price equal to the future value of the face amount given a positive rate of return.

C. can only be issued by the U.S. Treasury.

D. has less interest rate risk than a comparable coupon bond.

E. has a market price that is computed using semiannual compounding of interest.

2. Which of the following is an internal method for increasing your company's short-term cash position?

a) speeding up your company's payments on its invoices from suppliers

b) taking advantage of a line of credit

c) speeding up collections of payments from customers who bought on credit

Reference no: EM132002060

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