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Describe the Characteristics of Sunspots and How They Are Formed

question 59

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Describe the characteristics of sunspots and how they are formed.


Definitions:

Pure Discount Securities

Financial instruments that are sold at a discount from their face value and pay no interest until maturity, such as zero-coupon bonds.

Clean Price

The price of a bond excluding any interest that has accrued since issue or during the last coupon payment.

Dirty Price

The price of a bond that includes accrued interest, in contrast to the clean price which excludes it.

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or received.

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