Forecast Methods Based on Judgment,opinion,past Experiences,or Best Guesses Are Known

question 94

Multiple Choice

Forecast methods based on judgment,opinion,past experiences,or best guesses are known as ___________ methods.

• A)quantitative
• B)qualitative
• C)time series
• D)regression

Understand the determination of bond prices and their relation to yield to maturity.

Analyze the effect of coupons and maturity on bond pricing and yield.

Identify characteristics and valuation of different types of bonds: coupon, zero-coupon, callable, and convertible bonds.

Calculate the yield to maturity for various bonds.

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Definitions:

Coupon Interest

The fixed interest rate paid by a bond, typically annually or semi-annually.

Junk

A colloquial term for assets or securities that are of low quality, often associated with high risk and potential high return.

Interest Rate Risk

The potential for investment losses that are caused by a change in interest rates, affecting both lending and borrowing costs.

Time to Maturity

The remaining time until a financial instrument, such as a bond or loan, reaches its due date and the principal must be repaid.