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When a Psychological Contract Is Broken,both Parties Renegotiate to Create

question 14

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When a psychological contract is broken,both parties renegotiate to create a new contract.


Definitions:

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Coupon

The interest rate disbursed annually on a bond, indicated as a percent of its face value.

Bond Price

Bond price is the present value of a bond's future interest payments and its redemption value at maturity, which fluctuates with interest rates and the bond's credit rating.

Tax Exempt Equivalent Yield

A calculation that determines the return needed on a taxable bond to make it equivalent to the yield on a tax-exempt bond, factoring in the investor's tax rate.

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