Simplify Each Term, If Necessary, and Then Use the Distributive

question 177

Multiple Choice

Simplify each term, if necessary, and then use the distributive property to combine terms, if possible.

---

Definitions:

Face Value

The nominal value printed on a bond or stock certificate; it does not fluctuate with market prices.

Forward Rate

The agreed-upon price for a transaction that will occur at a future date, as in a forward contract.

Zero-Coupon Bond

A bond that is sold at a discount and pays no interest, but is redeemed at its face value at maturity, generating a profit for the holder.

Yield

The income return on an investment, such as the interest or dividends received, usually expressed as an annual percentage of the investment's cost.