The Value of a Bond Can Be Calculated Several Different

question 43

Multiple Choice

The value of a bond can be calculated several different ways, depending on the investor's objectives.Conservative, income-oriented bondholders will typically use

• A) promised yield, whereas aggressive bond traders are likely to use expected return.
• B) expected return, whereas aggressive bond traders are likely to use promised yield.
• C) realized yield, whereas aggressive bond traders are likely to use holding period return.
• D) holding period return, whereas aggressive bond traders are likely to use realized yield.

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Definitions:

Transtheoretical Model

A theory of behavior change that assesses an individual's readiness to act on a new healthier behavior, and provides strategies to guide the individual through the stages of change.

Precontemplation

A stage in the Transtheoretical Model of Behavior Change where the individual is not yet considering change or unaware of the need to change.

Action

The process of doing something in order to achieve a specific goal or result.

Stages of Change

A concept in psychology that maps out the phases individuals go through as they modify behavior, ranging from precontemplation to maintenance.