Which One of the Following Is Correct When Computing the Price

question 60

Multiple Choice

Which one of the following is correct when computing the price of a debt security when using a discount yield?

• A)The price will exceed the face value.
• B)An increase in the discount yield will increase the current price.
• C)The current price will decrease as the days to maturity decrease.
• D)The computation will be based on a 360-day year.
• E)The computation will consider leap years.

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Definitions:

Interpersonal Conflicts

Disagreements or disputes between individuals, which can arise from differences in opinions, needs, or interests.

Symptom/Situational Level

The observable behaviors, thoughts, or emotions that indicate a deeper psychological or physiological issue within a specific context or situation.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through reinforcement, punishment, and other learning principles.

Premature Terminator

An individual who ends therapy or counseling sessions before reaching the agreed upon goals or resolving the issues that instigated seeking help.