Construction of a qualifying asset is started on April 1 and finished on December 1. The fraction used to multiply an expenditure made on April 1 to find weighted-average accumulated expenditures is

a. 8/8.
b. 8/12.
c. 9/12.
d. 11/12.

Answer: b. 8/12.

Business

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Which of the following affects the cost of a bond?

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Which one of the following statements concerning a global view of the bond market is correct?

A) The United States today accounts for about seventy-five percent of the available fixed-income securities worldwide. B) U.S. pay bonds distribute both interest and principal payments in euros. C) Foreign bonds, like junk bonds, have high default risk. D) Exchange rate fluctuations influence the returns earned on foreign-pay bond holdings.

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