What Is the Return on a 5 Percent Coupon Bond

question 46

Multiple Choice

What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $1,200 next year?

• A)5 percent
• B)10 percent
• C)-5 percent
• D)25 percent

---

Definitions:

Gain Water

The process through which cells absorb water, which can happen in a hypotonic solution environment, leading to cell swelling or bursting in severe cases.

Cell

The smallest structural and functional unit of an organism, typically microscopic and consisting of cytoplasm and a nucleus enclosed in a membrane.

Turgor Pressure

The pressure of water pushing the plasma membrane against the cell wall of a plant or bacterium, providing rigidity to the cell.

Hypertonic

A solution that has a higher solute concentration than the cytoplasm of a cell, causing cell shrinkage.