Which of the Following Are Factors That Make It Difficult

question 69

Multiple Choice

Which of the following are factors that make it difficult to create and maintain a bond index?

• A) The universe of bonds is broader than stocks.
• B) The universe of bonds is constantly changing due to new issues, bond maturities, calls, and bond sinking funds.
• C) It is difficult to derive value, up-to-date prices.
• D) Choices a and c
• E) All of the above

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Definitions:

Cash Realizable Value

The amount of money that can be obtained from an asset during its disposal or liquidation, after deducting any associated costs.

Note Receivable

This is a written promissory note where one party promises to pay another party a definite sum of money either on demand or at a specified future date.

Interest

The cost of borrowing money, expressed as a percentage of the total amount loaned, or the income earned on invested capital.

Note Receivable

A written promise that requires another party to pay the holder a specific sum of money on a specified date or on demand.