Forecasting Techniques Generally Assume an Existing Causal System That Will

question 22

True/False

Forecasting techniques generally assume an existing causal system that will continue to exist in the future.

---

Definitions:

Zero-Coupon Bond

A bond that does not pay periodic interest and is sold at a significant discount to its face value, which is paid at the bond's maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including both interest payments and the gain or loss incurred if purchased at a price different from its face value.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock certificate, representing the amount due to the holder at maturity, not including interest or dividends.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date, often at a premium price.