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Match Each of the Definitions That Follow with the Appropriate

question 153

Multiple Choice

Match each of the definitions that follow with the appropriate investment term (a-j) .
-Preferred and common stocks that represent ownership in a company and do not have a fixed maturity date


Definitions:

Zero-Coupon Bonds

Bonds that don't pay periodic interest payments, but are sold at a discount from their face value and mature at that face value.

Expected Interest Rate

The anticipatory rate at which interest is projected to be applied on borrowed funds or received on investments.

Premium To Par

The amount by which the price of a bond exceeds its principal (or par) value, often occurring when the bond's interest rate is higher than current market rates.

Coupon Rate

The per annum interest yield on a bond, shown as a percentage of its principal amount.

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