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:

Current Yield

The annual income (interest or dividends) divided by the current price of the security, expressed as a percentage.

Yield to Maturity

The total return anticipated on a bond if held until it matures, including both interest payments and the appreciation or depreciation of the bond's value.

Coupon Rate

The interest rate stated on a bond or other fixed income security that the issuer promises to pay annually or semi-annually.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date, at a specified call price.