Which of the Following Techniques Is a Means of Reducing

question 25

Multiple Choice

Which of the following techniques is a means of reducing conflict in collective bargaining by achieving collaborative solutions at the bargaining table?

• A) distributive bargaining
• B) zero-sum bargaining
• C) interest-based bargaining
• D) collaborative bargaining

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Definitions:

Par Value

The face or nominal value of a bond, stock share, or coupon, as specified by the issuer.

Coupon Rate

Annually, the interest earned on a bond represented as a percentage of its face value.

Premium Bond

Bond prices and interest rates are inversely related; that is, they tend to move in the opposite direction from each other. A fixed-rate bond will sell at par when its coupon interest rate is equal to the going rate of interest, rd. When the going rate of interest is above the coupon rate, a fixed rate bond will sell at a “discount” below its par value. If current interest rates are below the coupon rate, a fixed rate bond will sell at a “premium” above its par value.

Floating Rate Bond

A floating rate bond is a bond with a variable interest rate, which adjusts periodically according to a specified benchmark.