It Is May 1

question 1

Multiple Choice

It is May 1. The quoted price of a bond with an Actual/Actual (in period) day count and 12% per annum coupon in the United States is 105. It has a face value of 100 and pays coupons on April 1 and October 1. What is the cash price??

• A) 106.00
• B) 106.02
• C) 105.98
• D) 106.04

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Definitions:

Minority Interest

An ownership stake in a company that is less than 50 percent, indicating that the investor does not have control over business operations.

Outstanding Stock

Shares of a company's stock that have been issued and are currently held by investors, including public shareholders and company insiders.

Parent

In financial terms, this refers to a parent company that owns enough voting stock in another company to control its operations and policies.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.