Match Each Term with Its Correct Definition

question 6

Multiple Choice

Match each term with its correct definition.

-Chemical process to make substances needed by the body

• A)Absorption
• B)Peristalsis
• C)Metabolism
• D)Anabolism
• E)Catabolism

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Definitions:

Term to Maturity

The duration of time until the final repayment date of a loan, bond, or other financial instrument.

Coupon Rate

The coupon rate is the interest rate that the issuer of a bond or other fixed-income security promises to pay to the holder annually, expressed as a percentage of the par value.

Interest-Rate Risk

Interest-Rate Risk refers to the risk of investment value changing due to fluctuations in the absolute level of interest rates, which can negatively affect fixed-income securities.

Price Risk

The risk that the price of an asset will change negatively, impacting the investment's value and potentially leading to financial loss.