Bonds Trade on an Accrual Interest Basis

question 52

Multiple Choice

Bonds trade on an accrual interest basis.This means an investor:

• A)can sell a bond at any time without losing the interest that has accrued
• B)can buy a bond at any time and gain the interest accrued from the time of the last payment
• C)can sell a bond at any time and retain the interest portion of the bond
• D)buy a bond at any time and receive an immediate interest check

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