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When a Fixed Income Security Is Being Traded at the Price

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When a fixed income security is being traded at the price above its face value it is trading


Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Indirect Method

A cash flow statement formulation approach that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Operating Activities

Activities directly related to the primary business operations, such as selling goods and services.

Net Income

A company's overall earnings remaining after deducting all expenses, taxes, and costs from its total revenue.

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