Question
A client holds a debt security that is actively traded in the market. Which of the following indicators would be the preferable guide to the
A client holds a debt security that is actively traded in the market. Which of the following indicators would be the preferable guide to the security's fair market value?
A. Published price quotations in the market.
B. The price at which the debt security was purchased.
C. The cash flow model using discounted future cash flows.
D. Matrix pricing, in which published price quotations of similar debt securities are used to compute the fair market value.
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Intermediate Accounting
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