You Purchased an Annual Interest Coupon Bond One Year Ago

question 77

Multiple Choice

You purchased an annual interest coupon bond one year ago that had six years remaining to maturity at that time.The coupon interest rate was 10%, and the par value was $1,000.At the time you purchased the bond, the yield to maturity was 8%.If you sold the bond after receiving the first interest payment and the yield to maturity continued to be 8%, your annual total rate of return on holding the bond for that year would have been

• A)7.00%.
• B)7.82%.
• C)8.00%.
• D)11.95%.

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Definitions:

Planning Process

A systematic series of steps that guides the planning of activities to achieve specific goals or objectives.

Planning

The act of making detailed strategies for achieving predetermined goals or tasks.

Standards

Standards refer to established norms or criteria that are used as a basis for comparison or judgment in various fields such as quality, behavior, or practices.

Control

The process of monitoring activities to ensure they are being accomplished as planned and correcting any deviations.