Terrence Goes for a Walk

question 72

Multiple Choice

Terrence goes for a walk.He walks 2.0 km north,then turns and walks 4.0 km south of east.What is his displacement vector? Take east to be in the +
-direction and north to be in the +
-direction.

• A)(2.0 + 4.0 )km
• B)(2.8 - 0.8 )km
• C)(4.8 + 5.7 )km
• D)(5.7 - 2.8 )km

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Definitions:

Annual Coupon

The yearly interest amount paid to bondholders, typically expressed as a percentage of the bond's face value.

Default Risk Premium

The additional yield a lender demands to compensate for the risk that the borrower may default on the loan.

Liquidity Premium

Additional yield that investors demand for holding a security that is not easily traded or sold without a significant price reduction.

Maturity Risk Premium

The extra yield that investors demand to compensate for the risk of holding a bond until its maturity date.