Sampling Error Refers to Differences Between Statistics Calculated from a Sample

question 65

True/False

Sampling error refers to differences between statistics calculated from a sample and statistics pertaining to the population from which the sample is drawn.

---

Definitions:

Par Value

A nominal or face value assigned to a share of stock or a bond by the issuer.

Interest Rate

This is the charge, applied as a percentage of the principal sum, that a lender requires from a borrower for using its assets.

Coupon Rate

A bond's annual return rate, expressed as a portion of its nominal value.

Comparable Bonds

Bonds that are similar in terms of interest rate, maturity, and credit quality, used as a benchmark to evaluate the value of other bonds.