1. Which of the following is LEAST LIKELY to be CORRECT?
A. The full price is the price that is adjusted for accrued interest.
B. If the issuer of the bond is in default, the bond is sold without accrued interest.
C. Accrued interest is the coupon interest earned by the buyer of the bond when the bond is held to the next coupon payment.
2. The following two statements on matrix pricing were made:
Statement 1: " Matrix pricing is a process to estimate the price of an actively-traded bond."
Statement 2: "Matrix pricing involves applications of modified duration."
A. Both statements are correct.
B. Exactly one of the statement is correct.
C. None of the statements is correct.
3. Matrix pricing is:
A. An estimation process to price inactively-traded bonds.
B. An estimation process to price treasuries.
C. An estimation process to price bonds with low credit quality.
1. Option C. Accrued interest is the coupon interest earned by the buyer of the bond when the bond is held to the next coupon payment
2. Option C , None of the statements is correct.
3. Option A. An estimation process to price inactively-traded bonds.
1. Which of the following is LEAST LIKELY to be CORRECT? A. The full price is...
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