Surveys Can Provide Invaluable Insights, but Only If They Are

question 107

Short Answer

Surveys can provide invaluable insights, but only if they are ________ (would produce identical results if repeated) and ________ (actually measure what they are designed to measure).

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Definitions:

Coupon Rate

Each year's interest rate on a bond displayed as a percentage of the bond's face value.

Cost of Capital

The minimum earnings rate a corporation must achieve on its projects to sustain its market valuation and draw in investments.

After-Tax Cost of Debt

The net cost of debt to a company after accounting for the tax deductions obtained on interest payments.

Bond Rating

A rating assigned to a bond that indicates its credit quality. The rating reflects the issuer's ability to repay the bond's principal and interest.