Level 1 Inputs

question 20

Multiple Choice

Level 1 inputs

• A) are the lowest-quality inputs but provide the best-quality fair value.
• B) are used when level 3 inputs are not available.
• C) are generally not observable in various markets.
• D) are more objective.

---

Definitions:

Amortized

The process of gradually paying off debt through a series of fixed payments that include both interest and a portion of the principal.

Compounded Monthly

Refers to the process where interest is calculated and added to the principal sum every month, resulting in interest earning interest.

Amortized

The process of gradually reducing a debt through periodic payments of both principal and interest over a set period of time.

Compounded Semi-annually

Interest calculated twice a year on the initial principal and accumulated interest from previous periods.