The sum of purchase price and the accrued interest on treasury bonds and notes is considered as ___________?
Correct answer: A. dirty price
- A. dirty price
- B. clean price
- C. paid price
- D. unpaid price
Explanation
The dirty price includes both the quoted bond price and the interest accrued since the last coupon payment. The clean price excludes accrued interest, so the submitted answer correctly identifies dirty 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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