A Bond Is a Financial Security That Represents a Promise

question 41

Multiple Choice

A bond is a financial security that represents a promise to repay

• A)a yearly interest payment only.
• B)a yearly principal payment only.
• C)a yearly interest payment and a principal payment.
• D)Bonds are investments that do not promise any kind of repayment.

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Definitions:

Mixed/Whole Numbers

Numbers that consist of both an integer and a fraction part.

Percents

A mathematical term denoting fractions of a hundred, used to describe proportions, interest rates, and changes in values.

Decimals

Numbers expressed using a decimal point to separate the whole part from the fractional part.

Mixed/Whole Numbers

Numbers consisting of both a whole number and a fractional part, commonly used in everyday measurements.