Which One of the Following Debt Instruments Guarantees Investors a Positive

question 10

Multiple Choice

Which one of the following debt instruments guarantees investors a positive real rate of return?

• A)zero coupon bond
• B)default-free, pure discount bond
• C)T-bill
• D)TIPS
• E)T-bond

Understand the role and study of epigenetics in behavior.

Compare and contrast adaptations, genetic mutations, and other key evolutionary concepts.

Distinguish the function and impact of different parts of the brain and nervous system in response to stimuli.

Understand the focus and structure of Interpersonal Psychotherapy (IPT).

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Definitions:

Risk-Free Rate

The hypothesized return rate of a risk-less investment, often exemplified by the yield found in government securities.

Market Risk Premium

The increased earnings expected by an investor for choosing a risky market portfolio over assets with no risk.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Selling

The process or act of offering goods or services in exchange for money or other compensation.