In the figure above, item 2 is used to ____.
Definitions:
Rate of Return
The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.
Bond Yield
The return an investor realizes on a bond, calculated as the annual interest payment divided by the bond's current market price.
Face Value
The nominal value printed on a bond, currency, ticket, or other financial instrument, representing its legal value rather than market value.
Market Price
The present rate at which a service or asset is available for purchase or sale.
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