The Yield on a Bond Is

question 92

Multiple Choice

The yield on a bond is

• A)the amount of money the borrower agrees to pay the bondholder each year divided by the face value of the bond.
• B)the amount of money the borrower agrees to pay the bondholder each year.
• C)the amount of money the borrower agrees to pay the bondholder each year divided by the current market price of the bond.
• D)the amount of principal that will be paid back when the bond matures.
• E)fixed for the life of the bond.

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Definitions:

Education Loans

Financial loans provided to students to help cover the costs of post-secondary education, which typically have to be repaid with interest after graduation.

Parents Liable

Refers to the legal responsibility of parents for the actions and behaviors of their underage children.

Minor Children

Individuals under the age of legal adulthood, whose rights and responsibilities are significantly different from those of adults.

Legally Binding Contract

An agreement between parties that is enforceable by law.