This Is an Economic Unit That Generates Savings

question 54

Multiple Choice

This is an economic unit that generates savings.

• A) Profitable unit
• B) Undistributed profits
• C) Savings surplus unit
• D) Economic unit savings

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Definitions:

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, usually expressed in years.

Bond Duration

A measure of the sensitivity of a bond's price to changes in interest rates, expressed in years.

Time To Maturity

The remaining duration until the expiration date of a financial instrument, when its principal is due to be paid to holders.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value, and paid to bondholders at specified intervals until maturity.