Actions Which the Decision Maker Cannot Change Are Called

question 50

Multiple Choice

Actions which the decision maker cannot change are called

• A) Rigid actions
• B) Inflexible actions
• C) Nondiscretionary actions
• D) Discretionary actions

---

Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over its lifetime, and the principal is repaid at maturity.

Interest-Rate Risk

The potential for investment losses due to fluctuations in interest rates.

Yield To Maturity

The total return anticipated on a bond if held until its maturity date, taking into account its current market price, par value, coupon interest rate, and time to maturity.

Coupon Bond

A type of bond that pays the holder interest payments at fixed intervals until maturity, when the principal is repaid.