The Value of a Bond Is Equal to the Present

question 82

True/False

The value of a bond is equal to the present value of the bond's interest payments plus the present value of the bond's maturity value,all discounted at the bond's coupon rate.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired together; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

CR

In the context of classical conditioning, it stands for Conditioned Response, which is the learned response to the conditioned stimulus.

Extinguishes

The process by which a previously learned behavior decreases in frequency or disappears as a result of non-reinforcement.

Edward L. Thorndike

A prominent American psychologist known for his work in behaviorism and the development of the Law of Effect, which suggests that responses to stimuli that are followed by satisfaction are more likely to recur.