The Term __________ Refers to the __________ That a Bond

question 59

Multiple Choice

The term __________ refers to the __________ that a bond is expected to pay at the time of purchase.

• A) rate of interest; yield rate
• B) bond yield; rate of return
• C) rate of interest; rate of return
• D) yield rate; bond rate

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Definitions:

Earnings per Share

A company's net profit divided by the number of its common shares outstanding, indicating the company's profitability on a per-share basis.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Sales

The activity of selling goods or services in exchange for money or other compensation.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income.