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Kevin is working on a project where he needs to anticipate future events and conditions,as well as avoid costly mistakes.Kevin is engaged in the ________ managerial function.
Default Risk Premium
The additional return that investors require to compensate them for the risk of default by the borrower.
Par Value
The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the base value of a stock set by the issuing company.
Coupon Rate
The interest rate stated on a bond or other fixed-income security, representing the periodic payment to bondholders, usually expressed as a percentage of the principal.
Yield to Maturity
Yield to maturity is the total return anticipated on a bond if it is held until it matures, including all interest payments and any gain or loss if the bond was purchased at a discount or premium to its face value.
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