Berthume Is a 92-Year-Old Gentleman

question 17

Multiple Choice

Berthume is a 92-year-old gentleman. He is a widow, and has long since retired from his job. Berthume's health has been failing lately. He has many different illnesses, has begun suffering from dementia. His two adult sons have chosen to move him to a nursing home so that he can get the care that he needs, and one of them visits him every day. Berthume would best be classified as a(n) ________.

• A) terminal patient.
• B) frail older adult.
• C) second-ager.
• D) victim of environmental press.

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Definitions:

Coupon Rate

The interest rate stipulated on a bond’s certificate, paid to its holder at specified intervals until maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until the end of its lifetime, accounting for interest payments and price changes.

Modified Duration

A formula that predicts the change in a bond's price for a 1% change in interest rates, considering the bond's yield to maturity.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 0.01%.