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Which of the Following Is TRUE

question 47

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Which of the following is TRUE?


Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date.

8 ½% Bond

A bond that pays an annual interest rate of 8.5% on its face value.

Current Yield

The annual income (interest or dividends) divided by the current price of the security, typically used for bonds.

Bond A

A generic term for any type of bond, often used in examples to explain bond investment concepts without referring to a specific issue.

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