Final answer:
The $60 annual interest payment that Mary receives from her bond is called the coupon. It represents the yearly interest the bond issuer commits to pay until the bond reaches maturity.
Step-by-step explanation:
In financial terms, the 60 that Mary receives annually from the bond is called a coupon. The coupon is the regular interest payment that bondholders receive from the issuer of the bond. It is typically expressed as a percentage of the bond's face value. In this case, Mary's bond pays a coupon of 60, which means she will receive 60 as interest every year.
The $60 a year in interest that Mary receives from her purchased bond is known as the coupon. In the context of bonds, a coupon represents the interest payments that the bond issuer agrees to pay to the bondholder each year until maturity. The face value of a bond is the principal amount that the issuer pays to the bondholder at maturity. It is important to note that the present value of a bond can differ from its face value, as it is influenced by current market interest rates.