The Average Investor Cannot Afford to Purchase Much of the Investment

question 109

True/False

The average investor cannot afford to purchase much of the investment information available from the U.S. government.

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Definitions:

Maturity

The state or moment when a financial instrument, such as a bond or loan, reaches its due date and principal is to be paid back.

Zero-Coupon Bonds

Bonds that are issued at a discount to their face value and do not pay periodic interest, but rather pay the face value at maturity.

Yield

The income return on an investment, such as the interest or dividends received, typically expressed as an annual percentage rate based on the investment's cost, its current market value, or its face value.

Face Value

The nominal or dollar value stated on a security or financial instrument, such as a bond or stock.