Management

✅ The correct answer is option A.
Investors held commercial papers generally from issuance to maturity. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities. Maturities on commercial paper rarely range longer than 270 days.

✅ The correct answer is option B.
Bonds that can be exchanged with other stock issued by same firm are classified as convertible bonds. A convertible bond is a fixed-income debt security that yields interest payments, but can be converted into a predetermined number of common stock or equity shares. The conversion from the bond to stock can be done at certain times during the bond’s life and is usually at the discretion of the bondholder.

✅ The correct answer is option D.
Non-callable bond = Value of option issued to call debt – Return rate on callable bond
= $780 – $370 = $410.

✅ The correct answer is option D.
Worldwide trade is Buying goods from abroad, Selling good to abroad and Paying Foreign Currency.

✅ The correct answer is option A.
Drafts which are backed up by banks and are payable to seller of products or services are classified as banker acceptance. A banker’s acceptance requires the bank to pay the holder a set amount of money on a set date.