In Considering the Holding Period Return, the Longer the Term

question 124

Multiple Choice

In considering the holding period return, the longer the term of the bond the:

• A) less important is the capital gain and the more important in the current yield.
• B) less important is the coupon rate and the more important is the current yield.
• C) less important is the capital gain.
• D) more important is the capital gain.

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Definitions:

Inner Ear

The innermost part of the ear, containing the cochlea and vestibular organs, responsible for hearing and balance.

Closure

The psychological term for an individual's desire for a firm answer to a question and an aversion to ambiguity.

Figures

Represents numerical data or statistical information, often displayed in graphs, charts, or tables.

Gestalt Principles

Psychological theories proposing that people naturally perceive objects as organized patterns and objects, not just as simple aggregates of their components.