_____________ Needs Are Needs That Are Contingent On, and Often

question 121

Short Answer

_____________ needs are needs that are contingent on, and often a result of, conditions related to the specific environment, time, and place.

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Definitions:

Call Premium

The extra amount that must be paid by the issuer to call a bond before its maturity date, above its par value.

Required Rate

The minimum rate of return on an investment that is necessary for it to be considered a viable option by investors or managers.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, accounting for its current market price, face value, interest payments, and time to maturity.

Annual Coupon

The yearly interest payment made to bondholders, typically expressed as a percentage of the bond's face value.