Examlex
As part of a database of new births at a hospital, some variables recorded are the age of the mother, the marital status of the mother (such as single, married, or divorced) , the weight of the baby, and the sex of the baby. Of these variables:
Bond Stripping
Selling bond cash flows (either coupon or principal payments) as stand-alone zero-coupon securities.
Arbitrage
The method of earning profits by exploiting the price variances of an identical asset across diverse markets through concurrent purchase and sale.
Law of One Price
The economic theory that states that the price of an identical asset or commodity will have the same price globally when price differences account for exchange rates.
Yield to Maturity
The total return anticipated on a bond if the bond is held until it matures, incorporating both interest payments received and any gain or loss if the bond is bought at a discount or premium to its face value.
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