__________ Are Phrases That Mean More Than the Sum of Their

question 2

Short Answer

__________ are phrases that mean more than the sum of their parts and can cause misunderstandings when translated literally.

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Definitions:

Required Return

Required Return is the minimum rate of return an investor expects to receive from an investment considering its risk level.

Yield To Maturity

The total return expected on a bond if it is held until the maturity date, considering all payments from the bond including coupon and principal repayment.

Coupon

The interest rate paid every year on a bond, presented as a percentage of its par value.

Maturity

The period until the final payment date of a loan, bond, or other financial instrument.