Behavior​

question 3

Multiple Choice

Behavior​

• A) ​results automatically from activating events such as a perceived injustice.
• B) ​is often erratic because emotions are impossible to control.
• C) ​follows naturally from activating events and is not a choice.
• D) ​is influenced by feelings and thinking patterns triggered by activating events.

Understand the role and impact of bond rating agencies on the bond market.

Calculate and analyze the yield to maturity (YTM) of bonds.

Grasp the relationship between bond prices, yield to maturity, and market interest rates.

Differentiate between various types of bonds based on their characteristics and risk profiles.

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Definitions:

Fire Insurance

A type of insurance policy that covers damage and losses caused by fire.

Rule Of 70

A simple way to estimate the number of years it takes for an amount to double, by dividing the number 70 by the annual growth rate percentage.

Interest

The cost of borrowing money or the return on investment for savings and investments, typically expressed as an annual percentage rate.

Risk Averse

Describing individuals or entities that prefer to avoid risk and would rather choose an alternative with a more certain but possibly lower return, than an option with a higher but uncertain return.