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Cyclical Unemployment Rises and Falls with Fluctuations in the Macroeconomy

question 183

True/False

Cyclical unemployment rises and falls with fluctuations in the macroeconomy.


Definitions:

Yield To Maturity

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

Par Value

Is the face value of a bond or stock, representing the amount that will be returned to the investor at maturity or the value at which the stock is noted on the balance sheet.

Default Risk Premiums

The additional yield that investors demand for holding a bond that has a risk of default over a risk-free security.

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