Examlex
Which one of the following is the BEST predictors of getting an STI?
Par-Value
Par-value is the legal capital per share, established for stocks and bonds, representing a minimal value below which shares cannot be issued.
Duration
A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often used to assess interest rate risk.
Coupon Rate
The annual interest rate paid on a bond's face value to its holders, expressed as a percentage of the face value.
Duration
Measures the sensitivity of a bond's price to changes in interest rates, calculated as a weighted average of the times until the bond's cash flows are received.
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