Examlex
Discriminant function analysis is appropriate when:
Par Value
The face value of a bond or the stated value of a stock, set at the time of issuance and often used in determining its worth at maturity.
Coupon Rate
The interest rate that an issuer of a bond promises to pay annually or semi-annually to the holder.
Default Risk Premiums
Default risk premiums are additional returns that investors require to compensate for the risk that a borrower might fail to make the required payments on their debt.
Treasury Bond
A long-term, interest-bearing security issued by the U.S. government, with a maturity period typically exceeding 10 years.
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