Yield-to-maturity is the average rate of return that will be earned on a bond if it is bought at the market price and held until it matures. It is the discount rate that makes the present value of its future cash flows equal to its market price. It is like an internal rate of return of a bond.

Degree of Operating Leverage. High operating leverage means that fixed costs have
a high proportion within total costs. High fixed cost proportion will lead to poor performance in bad times but very good performance in good times.

Yield curve plots the relationship between bond yields and maturity. 

While the conservative policy of working capital management creates the lowest level of risk, it fails to ensure optimum utilization of funds.

An accepted router to establish a financial control infrastructure within a company involves the following steps:

1. Analysis of the Initial Situation
2. Preparation of Forecasts and Simulations
3. Detection of Deviations in the Basic Financial Statements
4. Correction of Deviations

Real interest rate includes the expected inflation; nominal interest rate does not. 

200*10/100=20 (per year)

20*10 (years)= 200 (before the maturity time)

Unexpected returns are the result of new unexpected information arriving to the market during the period which changes some of the factors we believe are pertinent to the valuation of Aselsan. Some examples of relevant new information arriving to the market could be things like:
• Announcement of the latest growth rate of the economy
• Large swings in the value of the national currency
• Announcement of a new contract to sell large quantity of products to another country
• News of a large accident at the factory
• Announcement of a new facility being built that will significantly increase the production capacity of the company

Variance=(1/4)*((0.05-0.06)²+(0.07-0.06)²+(0.09-0.06)²+(0.03-0.06)²)=(1/4)*(0.0001+0.0001+0.0009+0.0009)=0.0005

$50*0.12 = $6 coupon

$6/1.14 + $6/(1.14^2) + $6/(1.14^3) + $6/(1.14^4) + ($50 + $6)/(1.14^5) = $46,57 

Labor hours required for production are stated in direct labor budget.

As long as is ? less than 1, there will always be a diversification benefit to investing in a portfolio.

The difference between the sales revenue and the total variable costs is named as the contribution margin

Since tax payments is a liabily item, an increase in tax payments causes to a decrease in net working capital since it is the difference between assets and liabilities.

Market, portfolio or systematic risk is the uncertainty inherent to the market that cannot be controllable. On the other hand, the diversifiable, unique or unsystematic risk is the uncertainty that is related to the invested asset. Therefore, unsystematic risk can be reduced through diversification whereas systematic risk cannot.

Terms of credit: On the worst case, a company may purchase all types of raw-materials for cash and sell all of its products on credit, the required amount of working capital will be very high. On the best case, the company may have the capability to buy on credit and sell it for cash and it will need less amount of working capital. It is a fact that the companies stand at a situation in between these cases and the length of the period ofcredit has a direct bearing on working capital.The correct answer is C. 

The first step of the short-term financial planning is sales forecast which is used to develop production plans.

The production volume has to be determined by taking into account the sales budget

Cash flows available to the firm or to the shareholders after the company makes its capital expenditures are defined as free cash flows.