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An offering price of 102 plus accrued interest applies to which of the following securities?
Suggested Answer: D
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a fundamental analyst. These analysts are guided by computations about a company's performance using data in annual reports.
35 comments · newest first
PI
Pilar
11 months ago
I agree, it's banker's acceptances for sure!
SE
Sena
11 months ago
Wait, are we sure about that? Sounds off.
CA
Carin
12 months ago
102 plus accrued interest is standard for CDs, right?
JI
Jina
12 months ago
I thought it was for treasury bills?
MA
Markus
1 year ago
That's definitely for banker's acceptances!
KE
Kerrie
1 year ago
I’m leaning towards certificates of deposit, but I’m not entirely confident. I need to double-check my notes on that.
RU
Rusty
1 year ago
I feel like we had a practice question about this, and I think it was about banker's acceptances, but I can't recall the details.
DA
Darci
1 year ago
I remember studying that treasury bills are sold at a discount and don’t have accrued interest, so it can't be A.
BE
Bettina
1 year ago
I think the offering price of 102 plus accrued interest is related to bonds, but I'm not sure which one specifically.
SH
Sheron
1 year ago
I think the key here is understanding which of these securities typically trade at a price above par value. That should help me narrow it down.
WI
Willow
1 year ago
I'm a bit confused on the difference between certificates of deposit, commercial paper, and banker's acceptances. I'll need to review those concepts.
BE
Bernardo
1 year ago
Treasury bills are short-term government securities, so that doesn't seem right. I'm leaning towards one of the other options.
GL
Glory
1 year ago
Okay, I know an offering price of 102 plus accrued interest is typical for bonds, but which of these securities would that apply to?
AM
Ammie
1 year ago
Hmm, this looks like a question about fixed-income securities. I'll need to think carefully about the characteristics of each option.
GL
Glynda
1 year ago
Haha, this question is as clear as mud. Maybe the exam writers are just trying to trip us up!
RA
Raylene
1 year ago
C) commercial paper
GR
Gracia
1 year ago
B) certificates of deposit
GL
Glory
1 year ago
A) treasury bills
CO
Colette
1 year ago
This is a tricky one. I'm going to have to do some more research on the pricing conventions for different fixed-income instruments.
NI
Nicholle
1 year ago
D) banker's acceptances
LI
Lizbeth
1 year ago
C) commercial paper
AL
Alison
1 year ago
B) certificates of deposit
HA
Han
1 year ago
A) treasury bills
TE
Tennie
2 years ago
Hmm, I thought that only applied to bonds, not short-term securities like CDs or commercial paper.
BO
Bo
1 year ago
D) banker's acceptances
EU
Eun
1 year ago
C) commercial paper
MA
Marilynn
1 year ago
B) certificates of deposit
TA
Talia
1 year ago
A) treasury bills
CH
Cherry
2 years ago
I'm pretty sure it's Treasury bills, since they're often quoted at a discount to par value.
BR
Brock
1 year ago
D) banker's acceptances
MA
Marguerita
2 years ago
That's correct! Treasury bills are often quoted at a discount to par value.
AL
Alica
2 years ago
A) treasury bills
EL
Elli
2 years ago
I'm not sure, but I think it might be C) commercial paper because it is also a short-term debt instrument like treasury bills.
LA
Lai
2 years ago
I agree with Gaynell, because treasury bills are typically sold at a discount and the offering price includes accrued interest.
GA
Gaynell
2 years ago
I think it's A) treasury bills.