If You Are Not Sure Why You Have Been Asked

question 53

True/False

If you are not sure why you have been asked to do something in a course or if you want to learn more about developing your skill set,you should ask your instructor,senior students in your program,and/or the counseling services at your college.

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Definitions:

Bond

A fixed-income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest and the return of the principal at maturity.

Treasury Bill

Short-term, highly liquid government debt obligation issued at a discount from the face value and returning the face amount at maturity.

Par Value

The nominal value of a security stated by the issuer.

Effective Annual Yield

This refers to the real return on an investment, taking into account the effects of compounding interest over a year.