Recoding Continuous Variables as Categorical Variables Is Discouraged Because It

question 6

True/False

Recoding continuous variables as categorical variables is discouraged because it results in a loss of information.

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Definitions:

Par Value

The face value or nominal value of a bond or stock, which is the amount paid out at maturity or the value on which dividend payments are calculated.

Yield To Maturity

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

Intrinsic Value

The actual, fundamental value of an asset, stock, or company calculated through analysis independent of market value.