Which of the Following Is Not a Factor Affecting the Market

question 79

Multiple Choice

Which of the following is not a factor affecting the market price of a foreign bond held by a U.S. investor?

• A) foreign interest rate movements
• B) credit risk
• C) exchange rate fluctuations
• D) All of the above are factors affecting the market price of a foreign bond.

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Definitions:

Non-Interest-Bearing

A financial instrument or account that does not earn interest over time, implying that its value does not increase beyond the principal amount.

Promissory Note

A finance-related written assurance where one party obligates to pay the other a clearly defined monetary amount, either when required or at a particular future time.

Discounted

Refers to the process of determining the present value of a future amount of money or stream of cash flows given a specific rate.

TD Canada Trust

One of Canada's prominent banking and financial services providers, known for offering a wide range of personal and business banking solutions.