The "Ability to Discriminate" Is a Characteristic of Which Type

question 39

Multiple Choice

The "ability to discriminate" is a characteristic of which type of validity?

• A) criterion
• B) convergent
• C) construct
• D) content

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Definitions:

Bond Interest Paid

The amount paid by the issuer of a bond as interest to the bondholders, usually expressed as a fixed percentage of the principal.

Discount

A reduction from the usual cost of something or the act of lowering the price.

Premium

The amount by which the price of something, especially a financial instrument, exceeds its principal or face value.

Unamortized Premium

The portion of the bond premium that has not yet been expensed to interest expense over the bond's life.