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The Vehicle Speed Sensor (VSS)for an Electronic Speedometer on an RWD

question 11

Multiple Choice

The vehicle speed sensor (VSS) for an electronic speedometer on an RWD vehicle is typically mounted _____.


Definitions:

Duration

A measure of the sensitivity of the price of a bond or a fixed income portfolio to changes in interest rates.

Interest-Rate Risk

The possibility of incurring losses in investments as a result of variations in interest rates, especially impacting fixed-income securities.

Coupon

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

Cash Flow Matching

A form of immunization, matching cash flows from a bond portfolio with those of an obligation.

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