In Constructing a Utility Curve

question 96

Multiple Choice

In constructing a utility curve

• A)a comparison is made of the different amounts of money at different times.
• B)the certainty of a certain amount is compared with the willingness to gamble that amount on a larger amount.
• C)one takes the risk out of gambling.
• D)inflation plays a critical part in the evaluation.

---

Definitions:

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.

Yield To Maturity

The expected complete return on a bond when retained through its entire lifespan.

Bond Rating

An assessment of the credit quality of a bond, typically issued by a rating agency, which indicates the likelihood of the bond issuer defaulting.

Current Yield

The annual income (interest or dividends) divided by the current price of the security, often used in context with bonds.