If the Holding Period Is Equal to the Term to Maturity

question 45

Multiple Choice

If the holding period is equal to the term to maturity for a corporate bond, then the rate of discount represents the

• A) coupon yield.
• B) effective yield.
• C) yield to call.
• D) yield to maturity.
• E) reinvestment rate.

---

Definitions:

Genetic Propensity

An inherited inclination or natural tendency to behave in a certain way or to develop certain traits, often influenced by genetic makeup.

Panic Disorder

An anxiety disorder that consists of sudden, overwhelming attacks of terror.

Generalized Anxiety Disorder

An anxiety disorder with a state of constant anxiety not associated with any specific object or event.

Overpowering Terror

An intense, extreme fear that overwhelms and paralyzes an individual, often without a clear or immediate external threat.