According to W

question 51

Multiple Choice

According to W.W.Rostow's model of economic development,in order for a country to be ready for "take-off" it must have

• A) an investment in manufacturing equal or greater than 10 percent of national income.
• B) a physical infrastructure and a social/political elite.
• C) comparative advantages in international trade, which it exploits.
• D) a majority of the population engaged in tertiary activities.
• E) a democratic form of government.

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Definitions:

Yield To Maturity

The total return expected on a bond if the bond is held until its maturity date.

Coupon Bond

A debt security that pays the holder a fixed interest amount (coupon) at scheduled intervals until the maturity date, when the principal amount is repaid.

Interest-Rate Risk

Interest-rate risk is the risk that changes in interest rates will negatively affect the value of an investment, particularly relevant for fixed-income securities.

Bond Duration

A measure of the sensitivity of a bond's price to changes in interest rates, representing the weighted average time until a bond's cash flows are received.