All of the Following Are Part of an Economic Model

question 192

Multiple Choice

All of the following are part of an economic model except

• A)assumptions.
• B)hypotheses.
• C)data.
• D)opinions.

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Definitions:

Yield To Maturity

The total return expected on a bond if it is held until its maturity date, including all interest payments and capital gains or losses.

Investment Horizon

Investment horizon refers to the total length of time that an investor expects to hold a portfolio or an investment before taking profits or closing positions.

Duration

A financial metric that estimates the weighted average time it takes for an investor to be repaid the bond's cash flows, serving as a measure of interest rate sensitivity.

Promised Yield

The return that a bond issuer agrees to pay to the bondholder until maturity, expressed as an annual percentage.