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A Bond Must Be Held Until Maturity in Order to Be

question 126

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A bond must be held until maturity in order to be classified as an amortized cost investment.


Definitions:

Orange Juice

A liquid extract of the orange tree fruit, consumed as a beverage or used in culinary dishes and as a commodity traded on futures markets.

Futures Contracts

Standardized legal agreements to buy or sell a financial instrument or physical commodity at a predetermined future date and price.

Profit (Loss)

The financial gain or loss resulting from revenue generated minus the expenses of operating the business.

Ounce

A unit of weight commonly used in the United States and the United Kingdom, equal to 1/16 of a pound or approximately 28.35 grams.

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