The Required Return on the Bond Is Likely to Differ

question 56

True/False

The required return on the bond is likely to differ from the stated interest rate for either of two reasons: 1) economic conditions have changed, causing a shift in the basic cost of long-term funds, or 2) the firm's risk has changed.

---

Definitions:

Child Ego State

Part of transactional analysis theory, referring to a set of behaviors, thoughts, and feelings replayed from one's own childhood.

Life Position

A concept in transactional analysis that refers to an individual's core beliefs about self and others, often summarized as "I'm OK; You're OK" as a healthy life position.

Transactional Analysis

A psychotherapeutic approach that analyses social transactions and interactions to understand and improve communication patterns and relationships.

Games

Structured forms of play or competitive activities, often governed by rules and undertaken for enjoyment, skill development, or educational purposes.