The introduction of teleconferencing has resulted in the decline of business and professional travel.

Jane Thorpe has been offered a seven-year bond issued by Barone, Inc., at a price of 943.22. The bond has a coupon rate of 9 percent and pays the coupon semiannually. Similar bonds in the market will yield 10 percent today. Should she buy the bonds at the offered price?

A) Yes, the bond is worth more at $1,015. B) No, the bond is only worth $921. C) Yes, the bond is worth more at $951. D) No, the bond is only worth $912.

Which of the situations listed might indicate a company has a low quality of earnings?

(a) The same accounting principles are used each year (b) Revenue is recognized when earned (c) Maintenance costs are capitalized and then depreciated (d) The company's P-E ratio is high relative to competiturs