Which of the Following Would NOT Be an Example of What-If

question 159

Multiple Choice

Which of the following would NOT be an example of what-if analysis?

• A) changing column and row labels
• B) entering different possible test scores to achieve a higher student average
• C) entering various down payments to achieve an acceptable monthly mortgage payment
• D) changing interest rates to determine an acceptable monthly car-payment payment amount

---

Definitions:

Law of One Price

The economic theory that states that the price of an identical asset or commodity will have the same price globally when price differences account for exchange rates.

Yield to Maturity

The total return anticipated on a bond if the bond is held until it matures, incorporating both interest payments received and any gain or loss if the bond is bought at a discount or premium to its face value.

Zero-coupon Bond

A type of bond that does not pay interest during its life but is sold at a discount and matures at its face value.

Maturity

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.