What Does It Mean When an Investor Says She Has

question 9

Multiple Choice

What does it mean when an investor says she has invested in a twenty-year zero-coupon bond?

• A) The investor is not receiving any return but the principal is safe for the period.
• B) The investor does not have to be concerned about investing the interest payments.
• C) The yield to maturity floats up and down with prevailing rates over the life of the bond.
• D) The investor receives direct deposits of annual interest payments without clipping coupons.
• E) The investment is locked in for the twenty year period because the investor cannot sell the bond.

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Definitions:

Recurring Appointment

An event or meeting that is scheduled to take place at regular intervals, such as weekly or monthly.

Weekly Lesson

A planned educational activity or curriculum segment designed to be taught over the course of a week.

Print Style

The set of formatting and design choices applied to a document to optimize its appearance when printed.

Daily Appointment Schedule

An organized plan for an individual's or organization's appointments and meetings for each day, often laid out in a calendar or planner.