The Initial Original Issue Discount (OID)on a Bond Is Equal

question 7

True/False

The initial original issue discount (OID)on a bond is equal to the difference between the acquisition price and the maturity value.

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Definitions:

Nominal

Scale used to classify or categorize data into groups that have different names but are not related to each other in any other systematic way.

Scale of Measurement

The method or standard used to quantify the variables researchers are interested in, such as nominal, ordinal, interval, and ratio scales.

Interval

Scale used to categorize, rank order, and arrange data so that an equal interval unit appears between each of the scores.

Descriptive Statistics

Set of statistical analyses that can be used to organize and describe the characteristics of a set of data.