_____ Are Derived by Making Assumptions and Representing Those Assumptions

question 49

Multiple Choice

_____ are derived by making assumptions and representing those assumptions mathematically.

• A)Empirical distributions
• B)Theoretical distributions
• C)Assumptive distributions
• D)Realistic distributions

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Definitions:

Face Value

The nominal value or dollar value printed on a bond, note, or other financial instrument, indicating the amount due at maturity.

Effective Annual Yield

Effective Annual Yield is the return on an investment for a one-year period, taking into account the effect of compounding interest.

Semi-Annually

Semi-annually refers to an event or action occurring twice a year, often used in the context of interest payments or reporting periods.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, factoring in its current price, interest payments, and maturity value.