Examlex
Which of the following statements about the electromagnetic spectrum is true?
Yield To Call
The return a bondholder gets if the bond is held until the call date, which is before the bond's actual maturity date.
Expected Capital Gains Yield
The anticipated rate of return from an investment due to an increase in its market price.
Reinvestment Rate Risk
Occurs when a short-term debt security must be “rolled over.” If interest rates have fallen, the reinvestment of principal will be at a lower rate, with correspondingly lower interest payments and ending value.
High-Coupon Bonds
Bonds that offer a higher-than-average interest rate (coupon) compared to others in the market, reflecting potentially higher risk.
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