When You Expect a Reader of Your Message to Be

question 67

Multiple Choice

When you expect a reader of your message to be uninterested, unwilling, displeased, or hostile, you should

• A)put the bad news first.
• B)begin with the main idea.
• C)explain all background information first.
• D)send the message via e-mail, text message, or IM.

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Definitions:

Macaulay Duration

A measure of the weighted average time until all cash flows from a bond are received, used to gauge a bond's interest rate sensitivity.

Yield To Maturity

A measurement of the annual return an investor can expect from a bond if held to its end date, factoring in its price, interest payments, and time to maturity.

Zero-Coupon Bond

A bond that does not pay periodic interest payments but is sold at a deep discount from its face value and pays its full face value at maturity.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often used as an indication of interest rate risk.