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.
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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
Epsilon Inc., a U.S. based company, must pay ¥1,000,000,000 to its Japanese component supplier in 3 months. Epsilon approaches a dealer and enters into a USD/JPY currency forward contract, containing
A. The dealer will deliver yen on expiration.
B. The amount of USD exchanged for JPY is determined at expiration.
C. Epsilon may receive or pay JPY,depending on the exchange rate at expiration.