Aristotle's Concept of Moderation, in Which One Should Not Err

question 31

Multiple Choice

Aristotle's concept of moderation, in which one should not err toward excess or deficiency, is called:

• A)the principle of eudaimonia.
• B)the principle of the golden mean.
• C)the principle of moral latitude.
• D)the principle of the moral exemplar.

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Definitions:

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures, calculated by considering all future coupon payments and the principal repayment.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often described as the weighted average time until all cash flows are paid.

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 1/100th of 1%.

Duration

An indicator of how the price of a bond or other debt security responds to interest rate fluctuations, typically represented in years.