A Bond Is ________

question 38

Multiple Choice

A bond is ________.

• A) not as good as investment as stocks
• B) pays interest sporadically
• C) never pays interest
• D) makes payments periodically for a specified period of time

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Definitions:

Interest Rate

The interest rate is the percentage of the principal charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage.

Years From Now

A temporal reference indicating a certain amount of time in the future from the current point.

Real Wages

Nominal wages corrected for inflation.

Money Wages

The current dollar amount of a person’s wages.