Examlex
The market value of a bond is equal to:
Interest Rate
The proportion of a specified sum that is added as a charge for borrowing it, usually stated as an annual rate.
Utility Function
A mathematical representation describing how a consumer ranks different bundles of goods according to levels of satisfaction.
Risk Averse
A preference for guaranteed outcomes over those with uncertainty, even if the uncertain outcomes might offer a higher expected return.
Coin-Flip Bet
A gambling proposition where the outcome is determined by the flip of a coin, representing a 50/50 chance of winning or losing.
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