The Annual Return to a Bond Is Called the

question 39

Multiple Choice

The annual return to a bond is called the

• A) face value.
• B) coupon rate.
• C) maturity date.
• D) yield.

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Definitions:

Payments

Transactions in which money is transferred from one party to another, often in exchange for goods or services.

Priority

The status of having precedence or more importance in comparison to other issues or tasks.

Unsecured Liabilities

Obligations or debts that are not protected by collateral, meaning the lender does not have claims on specific assets of the borrower if the debt is not repaid.

Non-Priority

A designation for debts or considerations that are deemed less important and hence are lower in the order of settlement or attention compared to priority ones.