Bond Return Can Include Both Interest and Capital Gains

question 11

True/False

Bond return can include both interest and capital gains.

---

Definitions:

Preferred Stock

A category of corporate ownership that possesses a superior right to the company's assets and profits compared to common stock, typically featuring stable dividend payouts.

Par

The face value of a bond or stock; for bonds, it's the amount to be repaid at maturity, and for stocks, it's a nominal dollar value used for accounting.

Dividend

A portion of a company's earnings distributed to its shareholders as a return on investment.

Rate Of Yield

A financial metric that calculates the amount of profit or loss an investment generates, relative to its cost.