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Which of the following has the highest interest rate risk? Benda Corporation a-month commercial paper a 20-year U.S. Treasury bond a Southwest Airlines bond maturing

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Which of the following has the highest interest rate risk? Benda Corporation a-month commercial paper a 20-year U.S. Treasury bond a Southwest Airlines bond maturing in four years a six-month money-market certificate at a federally issued bank If a firm with credit terms of 1/10 net 30 were to change its terms to 3/10 net 30, the result would probably be increased accounts receivable turnover a decrease in accounts payable increased bank loans. an increase in the average level of accounts receivable. In terms of trade credit, default costs vary indirectly with the quality of the customer. True False One method used to mentor the collections of accounts receivable is aging True False Carrying inventory reduces the costs associated with periodic bad debt losses. True False

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