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Chapter 18: Investing in Bonds

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Questions	Answers
Debt investments in which an investor loans money to an entity.	Bonds
Income earned on bond investments	Interest
The rate of return you receive on a bond	Yield
When bonds sell for more than their face value	Premium
Tells the investor the risk category that has been assigned to a bond	Bond Rating
The amount the bondholder will be paid at maturity	Face Value
An offset against loss from another investment or action	Hedge