The Maturation Date of a Bond Is the Date at Which

question 102

Multiple Choice

The maturation date of a bond is the date at which:

• A)coupon payments will be made.
• B)the principal will be repaid.
• C)dividend payments will be made.
• D)taxes on the bond are due.

---

Definitions:

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period, eroding purchasing power.

Lintner

Lintner refers to John Lintner, an economist known for his work on the dividend policy of firms and contributions to the capital asset pricing model (CAPM).

Miller and Scholes

Refers to Merton Miller and Myron Scholes, economists recognized for their work in finance, including the development of the Black-Scholes model for option pricing.