Which of the Following Does Not Affect the Market Price

question 85

Multiple Choice

Which of the following does not affect the market price of an outstanding bond issue?

• A)Fluctuations in the current market rate of interest.
• B)The credit rating of the issuing corporation.
• C)The price at which the bonds were originally issued.
• D)The length of time remaining until the bonds' maturity date.

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Definitions:

Debt To Total Assets

A ratio that indicates the proportion of a company's assets financed through debt.

Liquidity

The measure of how easily an asset or security can be converted into ready cash without affecting its market price.

Profitability

A measure of the ability of a company or business unit to generate earnings relative to its revenue, assets, equity, or other financial metrics over a certain period of time.

Price-earnings Ratio

A financial metric that measures a company's market share price relative to its earnings per share, indicating investor sentiment about future earnings.