Your Financial Plan Should Include a Plan for Protecting and Enhancing

question 99

True/False

Your financial plan should include a plan for protecting and enhancing your assets and income through carrying excess insurance coverage so you can profit in the event of a loss.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date.

Promised Rate Of Return

The return that a debtor promises to the creditor on the amount invested or loaned.

Interest Income

Revenue earned from deposit accounts or from lending funds, typically expressed as interest revenue on financial statements.