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When Your Reader May Oppose Your Recommendation, You Should Begin

question 34

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When your reader may oppose your recommendation, you should begin the report by announcing the recommendation directly.


Definitions:

Forward Rate

An interest rate applicable to a financial transaction that will take place in the future.

Yield To Maturity

The total return anticipated on a bond if held until it matures, considering all interest payments and the capital gain or loss.

Reinvestment Assumption

The assumption in financial planning or analysis that all cash flows or dividends will be reinvested to generate additional returns.

Coupon Rate

The interest rate stated on a bond or other fixed-income security, expressed as a percentage of the principal amount.

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