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(ignore fees)
A. Yes : Yes
B. No : Yes
C. Yes : No
Answer: A
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Since the carrying value (face value less discount) at issuance is equal to the purchase price, the carrying amount would be less than both the face value (price of 100) and the cash received since the latter includes accrued interest.
NEW QUESTION: 2
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Total portfolio risk is __________.
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B. Equal to systematic risk plus unavoidable risk
C. Equal to systematic risk plus non-diversifiable risk
D. Equal to avoidable risk plus diversifiable risk
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