Possible Sources of Income for Many Retirees Include

question 39

Multiple Choice

Possible sources of income for many retirees include

• A)government benefits.
• B)public pension plans.
• C)employer pension plans.
• D)personal retirement plans and annuities.
• E)government benefits, public pension plans, employer pension plans, personal retirement plans and annuities are possible sources of income.

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Definitions:

Current Yield

The annual income (interest or dividends) divided by the current price of the security, often used to measure the return on investment for bonds.

8 ½% Bond

A bond that pays an annual interest rate of 8.5% to its holders.

Yield to Maturity

The total return expected on a bond if held until it matures, considering both interest payments and the capital gain or loss.

Bonds

Long-term notes that are bought and sold on the open market, much like stocks.