The Yield on a Discount Basis

question 18

Multiple Choice

The yield on a discount basis:

• A)Is the same as the yield to maturity
• B)Is computed as if the year is 360 days long
• C)Uses the difference in face value and purchase price over purchase price to determine the return
• D)Uses the coupon payments to determine the return

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Definitions:

Takeover Bid

In corporate law, the offer to buy the voting stock of a corporation.

Friendly Suitor

An entity or person who proposes a takeover or merger that is welcomed by the target company's board.

Legal Implications

The possible legal consequences or effects that actions or decisions can have, potentially influencing rights, duties, or liabilities.