According to the Expectancy/disconfirmation Theory, When Performance Perceptions Are More

question 1

Multiple Choice

According to the expectancy/disconfirmation theory, when performance perceptions are more beneficial than what was expected, _____ occurs.

• A) positive disconfirmation
• B) negative disconfirmation
• C) negative expectation
• D) positive expectation

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Definitions:

Coupon Bond

A bond that offers interest payments to its holder through coupons attached to the bond, redeemable at specified intervals before the bond's maturity date.

Zero Coupon Bond

A bond that is issued at a discount to its face value and pays no interest before maturity, when its full face value is repaid.

Nominal Market Yield

The stated or face interest rate of a bond or other fixed-income security without adjusting for inflation.

Semi-Annually

Occurring or calculated twice a year, typically every six months.