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Exhibit 10-8: Choose the term that is described in each of the phrases below.
-Refer to Exhibit 10-8.Not recommended in situations where there could be a "learning to learn" effect.
Current Yield
The annual income (interest or dividends) divided by the current price of the security, expressed as a percentage.
Yield to Maturity
The total return anticipated on a bond if held until it matures, including both interest payments and the appreciation or depreciation of the bond's value.
Coupon Rate
The interest rate stated on a bond or other fixed income security that the issuer promises to pay annually or semi-annually.
Callable Bonds
Bonds that can be redeemed by the issuer before their maturity date, at a specified call price.
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