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Click the Exhibit button. Referring to the exhibit, which two statements are true? (Choose two.)
Current Yield
The annual interest payment of a bond divided by its current market price, used to compare the return on investment of different bonds.
Coupon Bond
A debt security that pays the holder a fixed interest rate (the coupon) periodically until maturity, at which point the principal is repaid.
Basis Point
A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of 1%.
Bond Prices
The cost or value of a bond, which can fluctuate based on interest rates, credit quality of the issuer, and other factors.
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