Which of these definitions of duration is most relevant to a bond investor? A bonds duration is its:
A. half-life.
B. Price sensitivity to yield changes.
C. First derivative of value with respect to its yield.
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An investor sells a bond at the quoted price of $98.00. In addition he receives accrued interest of $4.40. The clean price of the bond is:
A. Par value plus accrued interest
B. Accrued interest plus agreed upon bond price
C. Agreed upon bond price excluding accrued interest.
Which of the following is least likely a reason for discounting the value of stock in a closely held company?
A. Illiquidity
B. Marketability
Controlling interest
Which of the following types of institutions is most likely to have a long investment time horizon and a higher level of risk tolerance?
A bank
B. An endowment
C. An insurance company
Providing information about the performance of a company, its financial position, and changes in financial position that is useful to a wide range of users is most accurately described as the role of:
A. Financial reporting
B. The auditors report.
C. Financial statement analysis