Which One of the Following Debt Instruments Guarantees Investors a Positive

question 10

Multiple Choice

Which one of the following debt instruments guarantees investors a positive real rate of return?

• A)zero coupon bond
• B)default-free, pure discount bond
• C)T-bill
• D)TIPS
• E)T-bond

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Definitions:

Inhibitions

Psychological or emotional barriers that restrain or prevent certain actions, thoughts, or feelings, often based on social norms or personal fears.

Judgment

The cognitive process of evaluating or making decisions about something or someone based on available information and personal criteria.

Social Contagion Effect

The phenomenon where behaviors, attitudes, or emotions spread through a group or society, often magnified by social networks and media.

Stress Disorder

A type of mental disorder characterized by significant distress or impairment in social, occupational, or other important areas of functioning, arising from the exposure to traumatic or stressful events.