In the Present Value Bond Valuation Model,risk Is Generally Incorporated

question 102

Multiple Choice

In the present value bond valuation model,risk is generally incorporated into the

• A) maturity amount.
• B) timing of cash flows (assuming more risky cash flows are received early).
• C) discount rate or required return.
• D) cash flows (making some smaller if they are more risky).

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Definitions:

Continuous Reinforcement

A method of learning that entails giving a reward after every desired behavior.

Ratio Schedule

A schedule of reinforcement where a response is reinforced only after a specified number of responses have occurred.

Partial Reinforcement Effect

The tendency for a response that is reinforced after some, but not all, correct responses to be very resistant to extinction.

Continuous Reinforcement

A method of learning in which a behavior is reinforced each time it is performed, leading to faster acquisition of the behavior.