Multiple Choice
an investor purchases a bond at a price above par value. two years later, the investor sells the bond. The resulting capital gain or loss is measured by comparing the price at which
The bond is sold to the:
A) carrying value.
B) original purchase price.
C) original purchase price value plus the amortized amount of the premium.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: Which of the following is most appropriate
Q5: The "second-order" effect on a bond's percentage
Q6: an investor buys a 6% annual payment
Q7: a "buy-and-hold" investor purchases a fixed-rate bond
Q8: an investor buys a three-year bond with
Q10: a bond portfolio consists of the
Q11: a bond has an annual modified duration
Q12: a bond with exactly nine years remaining
Q13: Which of the following statements about duration
Q14: When the investor's investment horizon is less