An Important Numerical Measure of the Shape of a Distribution

question 93

Multiple Choice

An important numerical measure of the shape of a distribution is the

• A)correlation coefficient
• B)variance
• C)skewness
• D)relative location

---

Definitions:

Zero-Coupon Bonds

Bonds that are sold at a discount and pay no regular interest payments but are redeemed at their face value at maturity.

Yield To Maturity

The total return expected on a bond if held until its maturity date, accounting for its current price, interest payments, and face value.

Maturity

The date on which a financial instrument (e.g., bond, loan) reaches its final installment, and the principal is due to be paid to investors.

Expectations Theory

A theory related to interest rates stating that the long-term interest rates are geometric averages of present and future short-term interest rates, reflecting market assumptions about future rates.