Which of the Following Is an Example of Unearned Income

question 27

Multiple Choice

Which of the following is an example of unearned income?

• A) Interest.
• B) Dividends.
• C) Interest from savings.
• D) All of these answer choices are correct.

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Definitions:

Yield

A measure often used in finance to indicate the earnings generated and realized on an investment over a particular period, expressed as a percentage of the investment's cost.

Price

The sum of money needed to buy a product, service, or property.

Coupon Bond

A bond that entitles the holder to receive a fixed interest payment (coupon) at regular intervals until maturity, at which point the principal is repaid.

Yield To Maturity

The expected overall yield on a bond when it is kept until it matures.