Your Professor Is Considering Retirement

question 24

Multiple Choice

Your professor is considering retirement.Which of the following will not be relevant in his decision?

• A)The amount of retirement benefits he will receive if he retires
• B)The amount of salary he will receive if he does not retire
• C)The cost of commuting to and from school
• D)All of these ans choices are relevant in making his decision.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, accounting for interest payments and the capital gain or loss.

Current Yield

Current yield refers to the annual income (interest or dividends) received from an investment, expressed as a percentage of the investment's current market price.

Bond Coupon Rates

The interest rate provided by a bond each year, shown as a percentage of the bond's nominal value.

Minimum TIE

The lowest acceptable Times Interest Earned ratio, a financial metric used to determine how well a company can meet its interest payments on debt.