The Sometimes Inconsistent Results Coming from a Series of Paired-Choice

question 80

Multiple Choice

The sometimes inconsistent results coming from a series of paired-choice voting is due to:

• A) Voters changing their preferences
• B) Irrational preferences among some voters
• C) A normal consequence of majority voting
• D) Voters not having a good idea of their preferences

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Definitions:

Zero-Coupon Bond

A bond that is issued at a discount to its face value but pays no interest; the investor's return is the difference between the purchase price and the face value at maturity.

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the nominal value assigned to a share of stock for accounting purposes.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, incorporating both interest payments and the increase or decrease in the bond's value to its face value at maturity.

Nominal Rate

The interest rate stated on a loan or financial instrument, not adjusted for inflation.