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Elena is in the toothpaste section of the grocery store, and picks up a box of .99 Colgate as she quickly passes through. This is an example of decision making.
Default Risk
The likelihood that a debtor may not fulfill their debt contract obligations.
Yield Maturity
The term generally refers to the date when a bond or other fixed-income security matures, at which point the issuer is obligated to pay the principal amount back to the bondholders.
Asset Pricing
The method of determining the fair value of assets, taking into account various risk factors and expected returns.
Bond Indenture
A legal contract between the bond issuer and the bondholders, detailing the terms of the bond, such as the interest rate, maturity date, and collateral.
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