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Figure 2.1
Using the figure above, answer the following questions.
-What is the anatomical term for Label O?
8% Bond
A bond that pays an annual interest rate of 8% to its holders.
Current Yield
The annual return of a bond, expressed as a percentage of its current market price.
6 ¾% Bond
A debt security issued with an interest rate of six and three-quarters percent, denoting the annual return to investors.
Current Yield
A financial ratio that measures the annual income (interest or dividends) from an investment as a percentage of the current price of the security.
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