One of the Advantages of Simulation Is That

question 43

Multiple Choice

One of the advantages of simulation is that:

• A) managers must generate all of the conditions and constraints for solutions that they want to examine.
• B) it always generates a more accurate solution than a mathematical solution would.
• C) the policy changes may be tried without disturbing the real-life system.
• D) model development is less time consuming than for mathematical models.
• E) model solutions are transferable to a wide variety of problems.

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Definitions:

Semi-Annual

Semi-Annual refers to something occurring or done twice a year, typically every six months.

Coupon Bond

A bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal and final interest payment are repaid.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, taking into account its current market price, face value, interest rate, and time to maturity.

Par Value

Is the face value of a bond or stock, representing the amount that will be returned to the investor at maturity or the value at which the stock is noted on the balance sheet.