Multiple Choice
If F = face value and f = maturity in days, the formula for the purchase price (P) of a discount security in terms of the discount (d) is:
A) P = F [1 - (f/365) × d].
B) P = F / [1 + (f/365) × d].
C) P = F / [1 + (d/365) × f].
D) P = F × [1 - (d/365) × f].
Correct Answer:
Verified
Correct Answer:
Verified
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