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Netflix Has Recently Been Added to the S&P 500 (A

question 84

Multiple Choice

Netflix has recently been added to the S&P 500 (a distinction held by only the best organizations) and also had a 200 percent gain in stock price. Netflix's success has been attributed to each of the following EXCEPT:


Definitions:

Zero-Coupon Bond

A type of bond that is issued at a discount and does not pay periodic interest payments, only the face value at maturity.

Forward Interest Rate

An interest rate agreed upon now for a loan that will start at a future date, often indicative of market expectations for future interest rates.

Par Value

The nominal or face value of a stock or bond, which is the original value assigned when the security is issued.

Yield Curve

A graph showing the relationship between interest rates of bonds of equal credit quality but different maturities, often indicating economic expectations.

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