Which of the Following Is Correct Regarding the Present Value

question 149

Multiple Choice

Which of the following is correct regarding the present value calculations associated with bonds?

• A)The amount of interest a bond pays is fixed over its life.
• B)The market interest rate varies from day to day and is the rate used to determine the bond's present value.
• C)The amount investors are willing to pay for a bond varies because the bond's present value changes as the market interest rate changes.
• D)All of these choices.

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Definitions:

Parallel Forms

A method of reliability assessment in psychometrics where two different versions of a test are used to measure the same construct, to check for consistency.

Interrater

Relates to the degree of agreement among independent observers or raters evaluating the same phenomenon.

Predictive Validity

The extent to which a score or measurement can accurately predict future performance or behavior.

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure.