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

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Definitions:

Problem-Solving Skills

The ability to find solutions for challenging situations or obstacles effectively.

Intelligence Quotient

A measure of a person's cognitive abilities in relation to their age group, typically assessed through standardized tests.

William Stern

A German psychologist best known for developing the concept of the intelligence quotient (IQ).

Alfred Binet

A French psychologist who, along with Theodore Simon, developed the first practical IQ test, the Binet-Simon scale, pioneering intelligence testing.