Derived Demand for Products in the Business Market Means the Demand

question 61

True/False

Derived demand for products in the business market means the demand for consumer products is directly caused by the demand for industrial products.

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Definitions:

Coupon Bond

A type of bond that pays the holder interest payments at fixed intervals until maturity, when the principal is repaid.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.

Modified Duration

Macaulay’s duration divided by 1 + yield to maturity. Measures interest rate sensitivity of bonds.