Which of the Following Is a Characteristic of a Bond

question 137

Multiple Choice

Which of the following is a characteristic of a bond?

• A)A bond represents a promise to repay a fixed amount of funds.
• B)The face value or principal plus interest is repaid at a specified period of time.
• C)The length of coupon payments is fixed by the stated maturity period.
• D)All of these are characteristics of bonds.

Understand the concept and implications of satisficing in decision making.

Understand the basic concept and components of the Capital Asset Pricing Model (CAPM).

Identify and explain the assumptions underlying the CAPM and their implications.

Comprehend the concept of systematic risk and its measurement through beta.

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired result or outcome; in a second definition, the capability of producing the intended result or achievement of objectives.

Persuade

To convince someone to do or believe something through reasoning or argument.

Stereotypes

Widely held but fixed and oversimplified image or idea of a particular type of person or thing.