In the US,the ________ for a Bond Represents the Price of the of the Bond

question 133

Multiple Choice

In the U.S.,the ________ for a bond represents the price of the bond plus accrued interest earned since the last interest payment date.

• A)dirty price
• B)asked price
• C)spread
• D)clean price
• E)coupon price

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Definitions:

Accounting Estimate

Approximations or judgments made by management when preparing financial statements, due to uncertainty in determining the exact amounts.

Multiple Periods

Refers to accounting or financial analysis over several time frames, such as quarters or years, to evaluate performance or investments.

Double-Declining-Balance Depreciation

A method of accelerated depreciation where the asset's book value is reduced at double the rate of traditional straight-line depreciation.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.