Suppose you purchase a zero-coupon bond with face value $1,000, maturing in 20 years, for $214.51. If the yield to maturity on the bond remains unchanged, what will the price of the bond be five years from now?

A) $315.20
B) $387.52
C) $410.91
D) $680.58
E) $1,000.00

Refer to Figure 17.2. Sam has two job offers when he graduates from college. Sam views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $60,000. The second offer is at a fixed salary of $30,000 plus a possible bonus of $60,000. Sam believes that he has a 50-50 chance of earning the bonus. If Sam takes the offer that maximizes his expected utility and is risk-neutral, which job offer will he choose?

A) Sam will take the first offer.
B) Sam will take the second offer.
C) Sam is indifferent between the offers-both yield the same expected utility.
D) Indeterminate from the given information.

Three general strategies to help organizations cope with uncertainty are prevention, creation and deception.

Hersey and Blanchard's situational leadership theory argues that

A) leaders can be both task oriented and relationship oriented.
B) leaders must maintain their leadership style once it is chosen for a certain group.
C) the group should be manipulated to ensure leadership effectiveness.
D) the trait approach should be applied to improve leadership.

A bar chart is best used to show what?

A) How the parts of a whole are distributed
B) A sequence of events from start to finish
C) The change in the composition of something over time
D) Trends
E) How quantities compare over time

Skill based pay rewards employees based on the entire organization's performance.