Gwendolyn Francis Is Interested in Buying a Bond That Pays

question 116

Multiple Choice

Gwendolyn Francis is interested in buying a bond that pays $70 annually. The current price of the bond is $800. What is her current yield?

• A) 3.5%
• B) 4%
• C) 7%
• D) 8%
• E) 8.75%

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Definitions:

Variable-Ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses.

Fixed-Interval

In operant conditioning, a fixed-interval schedule is a reinforcement pattern where a response is rewarded only after a specified amount of time has elapsed, leading to a response pattern where actions are more frequent as the time for reward approaches.

Punishment

An event that decreases the behavior it follows.

Negative Reinforcers

Stimuli that, when removed after a behavior, increase the likelihood of that behavior being repeated in the future.