If a Person Wants to Use Shaping to Train a New

question 104

Multiple Choice

If a person wants to use shaping to train a new puppy to respond to a name, he would call the name and then:

• A) reward once the puppy comes all the way to him.
• B) reward when the puppy looks at him, then for turning toward him, and then for taking a few steps in his direction.
• C) jingle some keys or shake a dog toy to get the puppy interested enough to come over to him.
• D) pull the puppy with a leash, then reward when the puppy reaches him.

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Definitions:

Zero-coupon Bond

A bond that does not pay interest during its life and is sold at a discount from the face value, which is paid to the holder at maturity.

Forward Interest Rate

A rate that is deduced from current bond yields, representing the expected future interest rate between two periods.

Bond Stripping

Selling bond cash flows (either coupon or principal payments) as stand-alone zero-coupon securities.

Arbitrage

The method of earning profits by exploiting the price variances of an identical asset across diverse markets through concurrent purchase and sale.