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Define Performance Appraisal, and List the Benefits of Conducting a Performance

question 82

Essay

Define performance appraisal, and list the benefits of conducting a performance appraisal.


Definitions:

Required Rates

The minimum returns demanded by investors or lenders to compensate for the risk of an investment or loan.

Bonds

Bonds are debt securities issued by corporations or governments to raise funds, where the bond issuer agrees to pay back the principal along with interest.

Zero Coupon Issue

A bond or debt security that doesn’t pay periodic interest but is traded at a discount, realizing gains at maturity.

Annual Coupon

The yearly interest payment made by a bond issuer to its bondholders.

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