What Is the Dirty Price of a Bond

question 13

Multiple Choice

What is the dirty price of a bond?

• A) the bond's price based only on the bond's yield
• B) the bond's actual cash price
• C) the bond's price based only on coupon payments
• D) the bond's price less an adjustment for changes in interest rates

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Definitions:

Net Capital Outflow

The net flow of funds used for investment in foreign countries minus the flow of funds from foreign investments into the domestic market.

Domestic Investment

Financial investments within a country's borders, including infrastructure, buildings, and machinery, contributing to national economic growth.

Foreign-Currency Exchange

The exchange of currencies from various countries against one another.

Net Exports

The value of a country's total exports minus its total imports, representing the net spending on domestic goods and services by the rest of the world.