Which of the Following Is One of the Types of Information

question 98

Multiple Choice

Which of the following is one of the types of information used in making an attribution in the covariation model?

• A)consistency
• B)reliability
• C)validity
• D)efficacy

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Definitions:

Zero-Coupon Bond

A debt security that does not pay periodic interest, instead being sold at a discount and maturing at face value, generating profit at redemption.

Interest Payments

The cash outflows that a borrower makes to a lender as a compensation for the use of borrowed funds.

Premium Bond

A bond that is trading above its par value in the financial markets.

Default Risk Premium

The additional yield that an investor demands for holding a bond with default risk over a similar risk-free security.