In the Regression Equation,what Does the Letter a Represent

question 12

Multiple Choice

In the regression equation,what does the letter a represent?

• A)The Y-intercept
• B)The slope of the line
• C)Any value of the independent variable that is selected
• D)An error

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Definitions:

Maturity

Is the expiration date of a financial instrument, at which point the principal (or final interest payment) is repaid to the investors.

Coupon Rate

The interest rate per year on a bond, expressed as a fraction of its face value.

Par-Value

The face value of a bond or stock, representing the amount that the issuer agrees to repay at maturity or the nominal value of a share, respectively.

Duration

A measure of the sensitivity of a bond's price to changes in interest rates, essentially a weighted average of the time until cash flows are received.