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133
What is the quoted discount rate on a money market instrument?
A.The interest rate earned as a percentage of the final face value of a bond
B.The interest rate earned as a percentage of the initial price of a bond
C.The interest rate earned as a percentage of the average price of a bond
D.The risk-free rate used to calculate the present value of future cash flows from a bond
A.The interest rate earned as a percentage of the final face value of a bond
B.The interest rate earned as a percentage of the initial price of a bond
C.The interest rate earned as a percentage of the average price of a bond
D.The risk-free rate used to calculate the present value of future cash flows from a bond
Answer: A
The quoted discount rate is the interest earned as a percentage of the final face value
The quoted discount rate is the interest earned as a percentage of the final face value
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015
A. The contract becomes more valuable asthe price of the asset declines
B. The contract becomes more valuable asthe price of the asset rises
C. The contract is worth zero if the price ofthe asset declines after the contract has beenentered into
D. The contract is worth zero if the price ofthe asset rises after the contract has beenentered into
A. The contract becomes more valuable asthe price of the asset declines
B. The contract becomes more valuable asthe price of the asset rises
C. The contract is worth zero if the price ofthe asset declines after the contract has beenentered into
D. The contract is worth zero if the price ofthe asset rises after the contract has beenentered into