Sarah Deposits $5,000 in a CIBC Term Deposit Paying 3

question 157

True/False

Sarah deposits $5,000 in a CIBC term deposit paying 3 percent per year. After 1 year her deposit is worth $5,150.

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Definitions:

Price Volatility

The degree to which the price of an asset, security, or market index moves up or down over time.

Coupon Bond

A bond that pays the holder a fixed interest payment (coupon) at regular intervals until maturity, when the principal amount is repaid.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and is to be paid.

Price Sensitive

Pertaining to stocks or securities that are highly responsive to changes or news in the market, affecting their price movements.