Always Carry Out Your Calculations So That Your Final Answer

question 6

Multiple Choice

Always carry out your calculations so that your final answer after rounding has how many more decimal places than the original scores?

• A)0
• B)1
• C)2
• D)3

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Definitions:

Discount

A fee charged when someone buys a note before maturity. With regard to bonds, a bond sells at a discount if the market value becomes less than the face value.

Premium Price

A pricing strategy where goods or services are sold at a higher price point due to perceived advantages, often related to quality or status.

Bond Quoted

The price or interest rate at which a bond is currently being sold or bought in the market.

Dollar Amount

A numerical monetary value denoted in the currency of the United States.