Trailing Zeros at the End of a Number,but Before an Implied

question 76

True/False

Trailing zeros at the end of a number,but before an implied decimal point,are ambiguous.

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Definitions:

Call Premium

The additional amount that must be paid over the par value by the issuer to redeem a callable security before its maturity date.

Default Risk Premium (DRP)

The additional yield that investors demand for holding a bond that has a risk of default over a risk-free bond.

Liquidity Premium (LP)

Additional return that investors demand for holding an asset that is not easily convertible to cash without a loss in value.

Real Risk-free Rate

The return on an investment with no risk of financial loss, adjusted for inflation.