The Best Type of Item Yields an Item-Characteristic Curve That

question 140

Multiple Choice

The best type of item yields an item-characteristic curve that

• A) has a positive slope.
• B) has a negative slope.
• C) is leptokurtic.
• D) has few, if any, outliers.

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Definitions:

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market.

Par

Typically refers to a face value of a bond or stock that is set at issuance, or the stated value of a currency.

Principal Amount

The original sum of money borrowed in a loan, or invested, on which interest is calculated.

Maturity

Maturity is the date on which the principal amount of a bond, loan, or other financial instrument is to be repaid in full to the investor or lender.