Which One of the Following Terms Refers to a Bond's

question 26

Multiple Choice

Which one of the following terms refers to a bond's rate of return that is required by the marketplace?

• A)Coupon rate
• B)Yield to maturity
• C)Dirty yield
• D)Call yield
• E)Discount rate

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Definitions:

Elastic

Describes a situation in which the demand or supply for a product changes significantly when its price changes.

Barriers

Obstacles that prevent or hinder entry into a market or the pursuit of certain activities, which can be economic, legal, technical, or natural in nature.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is produced up to the point where the last unit provides a benefit to consumers equal to the cost of producing it.

Productive Efficiency

A state where goods and services are produced at the lowest possible cost and resources are utilized in the most efficient way.