Question
A bond quote on a screen excludes accrued interest. What price is being shown?
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Answer
Flat price, also called clean price.
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Question
What does current yield ignore that makes it incomplete as a total return measure?
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Answer
Capital gains or losses.
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Question
Why can electronic bond trading platforms improve market quality for smaller or standardized issues?
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Answer
They improve price transparency.
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Question
Why does reopening an existing bond issue usually improve its liquidity?
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Answer
It increases outstanding amount under the same CUSIP.
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