In 2018, Theresa Was in an Automobile Accident and Suffered

question 77

True/False

In 2018, Theresa was in an automobile accident and suffered physical injuries. The accident was caused by Ramon's negligence. In 2019, Theresa collected from his insurance company. She received $15,000 for loss of income, $10,000 for pain and suffering, $50,000 for punitive damages, and $6,000 for medical expenses which she had deducted on her 2018 tax return (the amount in excess of 7.5% of adjusted gross income). As a result of the above, Theresa's 2019 gross income is increased by $56,000.

---

Definitions:

Coupon Rate

The annual interest rate paid by a bond issuer to its holders, expressed as a percentage of the bond's face value.

Par Values

The nominal or face value of a stock or bond as stated by the issuer, fundamental in understanding stock issuance and bond pricing.

Yield To Maturity

The total return expected on a bond if held until it matures, considering all interest payments made over the life of the bond and its redemption value.

4-Year Bond

A debt security that matures in four years from the issuance date.