A Bond Trader Just Purchased and Resold a Bond

question 74

Multiple Choice

A bond trader just purchased and resold a bond.The amount of profit earned by the trader from this purchase and resale is referred to as the:

• A)market yield.
• B)yield-to-call.
• C)bid-ask spread.
• D)current yield.
• E)bond premium.

---

Definitions:

Withheld

Refers to a portion of an employee's wages not paid directly to them but retained by the employer for income tax or other purposes.

Matched By Employer

Typically refers to contributions to retirement plans or other benefits that an employer makes, matching the employee’s contribution to a certain percentage.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Product Warranty Expense

Costs that a company anticipates or incurs for repairing, replacing, or compensating for defective products during the warranty period.