In the Language of Bonds, the Terms "Principal" and "Face

question 18

True/False

In the language of bonds, the terms "principal" and "face value" are synonymous.

---

Definitions:

Assignable Cause Variation

Variation in a process that is caused by specific, identifiable factors, as opposed to random variation.

Special Cause Variation

Variation in a process that is caused by specific circumstance, which is non-random and can usually be identified and eliminated.

Random Variation

The unpredictability in the outcome of a process, experiment, or measurement due to chance.

Lower Control Limit

The lower control limit is the lowest value on a control chart below which process variability is considered to be out of control.