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John Has Decided to Start to Learn How to Wrestle

question 39

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John has decided to start to learn how to wrestle. On his first day at practice, a seasoned wrestler slams the back of his head to the mat. John was shaken and reported to the trainer that he "saw stars" after he hit his head. As a result of "seeing stars," John's ______ were temporarily affected as a result of the slam.


Definitions:

Promised Yield

The return that a bond issuer agrees to pay to the bondholder until maturity, expressed as an annual percentage.

Coupon Rate

The annual interest rate paid by a bond issuer to the bondholder, usually expressed as a percentage of the bond's face value.

Duration

A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates, often expressed in years.

Perpetuities

A type of annuity that receives an infinite series of identical cash flows with no end.

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