A Clause That Require You to Pay an Initial Portion

question 34

Multiple Choice

A clause that require you to pay an initial portion of medical expenses annually before receiving reimbursement is a/an

• A)coinsurance
• B)deductible
• C)premium
• D)copayment

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Definitions:

Zero-Coupon Bonds

Bonds that do not pay interest during their lifetime and are instead issued at a discount to their face value, which is paid at maturity.

Yield

The income return on an investment, such as the interest or dividends received, often expressed as an annual percentage based on the investment's cost, its current market value, or its face value.

Yield To Maturity

The total return expected on a bond if held until it matures, accounting for its current price, face value, interest payments, and time to maturity.

Zero-Coupon Bond

A bond that does not pay periodic interest and is sold at a deep discount from its face value.