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Question 1

Interest on a new bond starts to accrue as of the:

Answer 1

Dated date.
In a new bond issue interest begins to accrue as of the dated date.

Question 2

What is the formula for current yield?

Answer 2

The formula for current yield is (annual income) divided by (current market price)

Question 3

When using a bond mutual fund volatility rating, what are the required disclosures?

Answer 3

• the name of the entity that issued the rating.
• a note describing volatility as a risk rating.
• a link to the website that includes the criteria and methodology used.

Question 4

What is treasury stock?

Answer 4

Shares that are outstanding (have been issued) and have been repurchased by the issuer out of the secondary market.
Shares of treasury stock do not receive dividends and do not have voting rights.