Which One of These Is Included in the Yield of a Bond

question 50

Multiple Choice

Which one of these is included in the yield of a bond with a low credit rating but not included in a Canadian Treasury bond yield? Assume both bonds are selling at a premium.

• A)real rate of return
• B)inflation premium
• C)default premium
• D)loss of premium

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Definitions:

Nature Versus Nurture

The ongoing debate regarding the relative contributions of genetic inheritance and environmental factors to human development.

Aggressive

Exhibiting forceful behavior or attitudes with the intention to dominate or harm others.

Longitudinal

A research design in which the same subjects are observed for an extended period to detect any changes that may occur over time.

Cross-Sequential Design

is a research method that combines both longitudinal and cross-sectional designs to study changes over time in different cohorts.