Use the Table for the Question(s)below

question 66

Multiple Choice

Use the table for the question(s) below.
Consider the following average annual returns:
-What is the excess return for corporate bonds?

• A)2.7%
• B)1.3%
• C)-5.7%
• D)0%

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Definitions:

Interest Receipt

Interest Receipts are amounts received by an individual or a company as interest from investments, loans given, or savings.

Market Rate

The prevailing interest rate available in the market for loans or the return on investment securities.

Preferred Shares

Preferred shares are a type of equity security that typically provide dividends and asset liquidation preference over common shares but usually do not carry voting rights.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.