Chain-Weighted Measures of Real GDP Make Use of Prices From

question 7

Multiple Choice

Chain-weighted measures of real GDP make use of prices from:

• A) an unchanging base year.
• B) a continuously changing base year.
• C) a base year that is changed approximately every 5 years.
• D) a base year that is changed approximately every 10 years.

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Definitions:

Nominal Yield To Maturity

The return an investor expects to earn if a bond is held until its maturity date, without adjusting for inflation.

Semiannual Coupon

A semiannual coupon refers to the interest payment made to bondholders twice a year.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily reflect its market value.

Coupon Interest Rate

Yearly rate of interest on a bond, denoted as a percentage of its principal value.