A Participant, Who Is Age 38, in a Cash or Deferred

question 44

Multiple Choice

A participant, who is age 38, in a cash or deferred arrangement plan [§ 401(k) ] may contribute up to what amount in 2017?

• A)$12,000
• B)$17,000
• C)$17,500
• D)$18,000
• E)None of the above

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Definitions:

Maturity

Is the expiration date of a financial instrument, at which point the principal (or final interest payment) is repaid to the investors.

Coupon Rate

The interest rate per year on a bond, expressed as a fraction of its face value.

Par-Value

The face value of a bond or stock, representing the amount that the issuer agrees to repay at maturity or the nominal value of a share, respectively.

Duration

A measure of the sensitivity of a bond's price to changes in interest rates, essentially a weighted average of the time until cash flows are received.