A Bond's Yield Is the Fixed Amount That the Borrower

question 47

True/False

A bond's yield is the fixed amount that the borrower agrees to pay the bondholder each year.

---

Definitions:

Shares

Units of ownership interest in a corporation or financial asset, affording certain rights such as dividends and voting rights.

Common Stock

An investment vehicle that indicates a partial ownership stake in a corporation, offering the investor voting privileges and a fraction of the company's profits in the form of dividends.

Par Value

The stated or par value of a bond, stock share, or coupon as indicated by the issuing entity.

Shares

Units of ownership interest in a corporation or financial asset, providing a share in profits and an entitlement to company assets and dividends.