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:

Career Management Process

Involves planning and taking actions towards achieving career goals. It includes self-assessment, setting career objectives, skill development, and networking.

Skills Development

The process of identifying, learning, and refining abilities and competencies in order to improve job performance or pursue new opportunities.

Glass Ceiling

An invisible barrier that prevents certain groups, often women and minorities, from advancing beyond a certain level in a hierarchy.

Invisible Barrier

Refers to unseen obstacles that prevent individuals or groups from advancing within professional or social hierarchies.