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Differences in ________ Explain Why Interest Rates on Treasury Securities

question 100

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Differences in ________ explain why interest rates on Treasury securities are not all the same.


Definitions:

Face Value

The original cost of a security or bond, as printed on the certificate, which does not change over time.

Coupon Rate

The interest rate specified on a bond or other fixed income security that the issuer promises to pay to the holder until maturity.

Current Yield

is the annual income (interest or dividends) divided by the current price of the security, used to assess the return of an investment.

Market Price

The prevailing market price for an asset or service available for trade or acquisition.

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