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1. Homestyle Interiors sells a variety of home furnishings including entertainment centers. At March 31, the company had 150 centers in inventory. The company's policy is to maintain an entertainment center inventory equal to 3% of next month's sales. The company expects the following sales activity for the second quarter of the year:
April 800 centers
May 1,200 centers
June 1,000 centers
What is the projected production for May?
1,206 centers
1,194 centers
1,266 centers
1,134 centers
2. In percentage terms, higher coupon bonds experience a _______ price change compared with lower coupon bonds of the same maturity given a change in yield to maturity.
smaller or greater
greater
similar
None of these.
smaller
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