INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 60

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-The social security administration [can | cannot] give you a fairly accurate estimate of benefits you can expect in the future.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Coupon

The interest rate on a bond, typically paid semiannually to the bondholders.

Yield To Maturity

An estimate of the annualized return an investor will receive from a bond, assuming it is held until its maturity date, inclusive of all payments.

Par Value

Par value is the face value of a bond or stock as stated by the issuing company, which may differ from its market value; for stocks, it is often a nominal amount.

Coupon

The interest rate stated on a bond when issued, which is paid by the issuer to the bondholder at specified intervals until maturity.