The Key Difference Between an Interval and a Ratio Variable

question 42

Multiple Choice

The key difference between an interval and a ratio variable is that only

• A)interval variables have a true zero point.
• B)ratio variables have values that can be ordered.
• C)ratio variables have a true zero point.
• D)interval variables have values that can be ordered.

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Definitions:

Accrued Interest

The interest that has accumulated on a bond since the last interest payment up to, but not including, the present date.

Semiannually

A term describing events or actions that occur twice a year, typically every six months.

Investment Grade

A rating assigned to bonds that indicates they are of high quality and low credit risk.

Bond Grade

The rating assigned to a bond by credit rating agencies, reflecting the issuer's creditworthiness and the bond's risk level.