Self-Interest Relates to

question 252

Multiple Choice

Self-interest relates to

• A) only monetary objectives.
• B) both monetary and nonmonetary objectives.
• C) the ceteris paribus assumption.
• D) normative economic analysis and not positive economic analysis.

---

Definitions:

Bankruptcy Risk

The likelihood that a company will be unable to meet its financial obligations and be forced into bankruptcy, causing potential losses for investors.

Bond Indenture

The contract between the issuer and the bondholder.

Coupon Rate

The per year interest yield of a bond, expressed as a portion of its principal value in percentage.

Par Value

The face value of a bond or stock, representing the amount that will be paid back at maturity.