An Investor Can Make Money on Bond Investments by Receiving

question 176

Multiple Choice

An investor can make money on bond investments by receiving

• A)interest income.
• B)dividend income.
• C)capital gains.
• D)both interest income and capital gains.

---

Definitions:

Down Payment

An initial payment made when purchasing an item on credit, typically a percentage of the purchase price.

Savings

Money set aside from income for future use, typically held in secure or low-risk savings accounts or investment products to preserve or grow wealth.

Frequency of Compounding

The number of times interest is added to the principal balance of an investment or loan per time period, affecting the total interest earned or paid.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth.