__________ Refers to the Process of Establishing That a Practitioner

question 4

Multiple Choice

__________ refers to the process of establishing that a practitioner has achieved a particular level of knowledge,skill,and ability as demonstrated by coursework,instruction,and/or supervised experience.

• A)Practice standards
• B)General knowledge exam
• C)Professional certification
• D)None of the above

---

Definitions:

Sinking Fund

Facilitates the orderly retirement of a bond issue. This can be achieved in one of two ways: the company can call in for redemption (at par value) a certain percentage of bonds each year or the company may buy the required amount of bonds on the open market.

Equilibrium

The condition under which the intrinsic value of a security is equal to its price; also, its expected return is equal to its required return.

Yield Curve

The curve that results when the yield to maturity is plotted on the y-axis with term to maturity on the x-axis.

Junk Bonds

High-risk, high-yield bonds issued to finance leveraged buyouts, mergers, or troubled companies.