Use the Following Two Columns of Items to Answer the Matching

question 23

Short Answer

Use the following two columns of items to answer the matching questions below:
-risk premium
A)compensation required for default risk
B)risk that a bond's price will decline in response to an increase in interest rates
C)risk that the face value may not be repaid

• A)compensation required for default risk
• B)risk that a bond's price will decline in response to an increase in interest rates
• C)risk that the face value may not be repaid

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Definitions:

Population Variances

The measurement of how much the numbers in a specific population are spread out from their mean.

Test Statistic

A value calculated from sample data that is used in hypothesis testing to determine whether to reject the null hypothesis.

Confidence Interval

An interval of figures obtained from statistics of a sample, expected to include the value of a hidden population parameter.

Level of Significance

A predetermined value that indicates the probability of rejecting a true null hypothesis in hypothesis testing.