Which One of the Following Debt Instruments Guarantees Investors a Positive

question 10

Multiple Choice

Which one of the following debt instruments guarantees investors a positive real rate of return?

• A)zero coupon bond
• B)default-free, pure discount bond
• C)T-bill
• D)TIPS
• E)T-bond

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Definitions:

Human Consistency

The tendency of an individual to maintain the same behaviors, attitudes, and beliefs over time.

Natural Disasters

Severe and extreme weather events or geological occurrences that cause significant damage, disruption, or loss of life, such as earthquakes, floods, or hurricanes.

Organizing

The process of arranging or structuring elements in a systematic way to achieve specific objectives or goals.

Observational Learning

Observational learning is the process of acquiring skills, knowledge, or behaviors by watching and imitating others, as highlighted in social learning theory.