Imposing Some Cost on Others to Reduce the Value of the Reversion

question 17

Multiple Choice

Imposing some cost on others to reduce the value of the reversion outcome is known as:

• A)coercion.
• B)reversion.
• C)linkage.
• D)collaboration.

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Definitions:

Market Yield

Market yield refers to the current rate of return anticipated on a bond if held to maturity, factoring in both its price and interest payouts compared to the market's interest rates.

Interest-Rate Sensitivity

The degree to which the price of an investment, often a bond, responds to changes in interest rates.

Bond Prices

The market value of bonds, which inversely fluctuates with interest rates: when rates go up, bond prices fall, and vice versa.

Coupon Rate

The yearly interest rate yielded by a bond, shown as a percent of its nominal value.