The Discount Rate That Sets the Present Value of the Promised

question 68

Multiple Choice

The discount rate that sets the present value of the promised bond payments equal to the current market price of the bond is called:

• A)the current yield.
• B)the yield to maturity.
• C)the zero-coupon yield.
• D)the discount yield.

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Definitions:

Interpretivism

A research paradigm that emphasizes the understanding of social phenomena through the meanings that people assign to them.

Rationalism

The view that knowledge is best acquired by reason and factual analysis rather than faith or emotion.

Positivism

The idea that phenomena are governed by, and can be explained by, rules based on objective observation and generalizations from those observations.

Explanation

An attempt to account for the relationships observed among phenomena. A basic goal of communications research is to explain how and why communication phenomena occur.