Which of the Following Is Not True of a Standard

question 35

Multiple Choice

Which of the following is not true of a standard floating-rate note on a coupon reset date?

• A) The next coupon payment is set based on prevailing market rates.
• B) The principal is unchanged.
• C) The ex-coupon price (the price of the note not including the coupon immediately due) of the note is par.
• D) The cum-coupon price (the price of the note including the coupon immediately due) is par.

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Definitions:

Nonlinear Relationship

Relationship between variables not appropriately represented by a straight line.

Faculty Members

Individuals who teach courses or are involved in academic research at a college or university.

Classes

In the context of data, refers to categories or groupings into which data points are sorted; in education, refers to courses of instruction.

Pearson Correlation Coefficient

A measure of the linear correlation between two variables X and Y, ranging from -1 to 1.