Choosing the Best Available Options Given One's Interests and Information

question 48

Multiple Choice

Choosing the best available options given one's interests and information is ________.

• A) selfishness
• B) rationality
• C) attitudinalism
• D) ideology
• E) affect

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Definitions:

Callable Bond

A type of bond that gives the issuer the right to redeem the bond at a predetermined price before its maturity date.

Yield To Call

The rate of return anticipated on a bond if it is held until the call date, before the bond's maturity date.

Par Value

The face value of a bond or stock, representing the amount the issuer will return to the holder at maturity.

Current Yield

The annual income (interest or dividends) divided by the current price of the security.