The bid price is always greater than the ask price in stock

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Reference no: EM131883990

1. A bond is a security that obligates the issuer to make specified payment at the prevailing market rate to the bond holders. T/F

2. You are a bond holder with maturity of 10 10 years. If the economy booms after you purchased the bond and money is in demand, you can sell your bond at a premium price. T/F

3. Discount rate at which the PV of the bond's payments equals the price you paid. T/F

4. Market value is not the same as book value or liquidation value. T/F

5. The bid price is always greater than the ask price in the stock. T/F

6. An investor who wants to sell his stock immediately should place a limit order. T/F

7. Payback method is a reliable method of deciding between projects because it takes into account TVM. T/F

8. Market indices(indexes) are published by the government to farcast the state of the economy. T/F

Reference no: EM131883990

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