What Is Attained When Variable and Method Names Are Meaningful

question 4

Multiple Choice

What is attained when variable and method names are meaningful and when they represent the actual value they represent?

• A) Understandability
• B) Maintainability
• C) Readability
• D) Flexibility

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Definitions:

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates.

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, including all payments of principal and interest.

Immunization

A strategy that matches durations of assets and liabilities so as to make net worth unaffected by interest rate movements.

Interest-Rate Risk

The potential for investment losses due to fluctuations in interest rates, affecting particularly fixed-income securities.