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John really wants a promotion and believes that he has a high probability of earning the promotion if he works hard. Because a promotion is important to him, that performing well will result in a promotion, and because he believes he a good chance of earning the promotion, this is an example of
Yield-To-Maturity
The total return anticipated on a bond if the bond is held until its maturity date, considering all interest payments and the principal repayment.
Zero-Coupon Bond
A debt security that doesn't pay periodic interest but is issued at a substantial discount to its face value, maturing at that face value.
Face Value
The nominal or dollar value printed on a bond, stock, or other financial instrument, representing the value at issuance and the value to be repaid at maturity.
Zero-Coupon Bond
A financial security that does not pay periodic interest but is sold at a discount from its face value, and the investor receives the face value at maturity.
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