The price of treasury notes and treasury bonds without including accrued interest is classified as ____________?
Correct answer: A. clean price
- A. clean price
- B. full price
- C. dirty price
- D. accrued price
Explanation
The clean price is the quoted bond price excluding accrued interest. The amount including accrued interest is called the dirty price or full price.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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