Whether a Need Is a Lower Order or a Higher

question 15

True/False

Whether a need is a lower order or a higher order need, it may not always remain as a motivating factor, due to the fact that once satisfied, it may lose its importance and be replaced with a different need.

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Definitions:

Interest Rate Risk Premium

The extra return investors demand for holding an interest-bearing asset, compensating them for the risk of interest rate fluctuations.

Coupon Rate

The annual interest rate paid by a bond expressed as a percentage of the bond's face value.

YTM

Yield to Maturity, the total return anticipated on a bond if held until it matures.

Premium Bonds

Bonds sold for more than their face value due to offering interest rates higher than the current market average.