What Is the Total Rate of Return on a Bond

question 23

Multiple Choice

What is the total rate of return on a bond with a coupon of $55 that was purchased for $900 and sold one year later for $950?

• A)5.56%
• B)6.11%
• C)11.67%
• D)12.43%

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Definitions:

Information-Processing Theorists

Scholars who study how humans mentally process information from their environment, drawing analogies with computer processing.

Short-Term Memory

The part of the memory system where information is stored for a short duration, typically seconds to minutes, without rehearsal.

Information-Processing Theorists

Scholars who study how humans mentally process and store information, drawing analogies to computer processing.

Precausal Reasoning

A type of thinking observed in young children where they make causal inferences that are not based on conventional logic or a clear understanding of cause and effect.