To Compute the Holding Period Return on a Bond Investment

question 98

Multiple Choice

To compute the holding period return on a bond investment, the investor should divide the purchase price of the bond into

• A) any increase or decrease in the bond's price.
• B) the annual coupon payment.
• C) the bond's yield to maturity.
• D) coupon payments received plus or minus any change in the bond's price.

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Definitions:

Quick Gut Feelings

Rapid, intuitive judgments formed without conscious deliberation.

Social Influence

The effect that the words, actions, or mere presence of other people have on our thoughts, feelings, attitudes, or behavior.

Immorality

The quality or action of being wrong or evil in behavior or ethics, contrary to accepted moral standards.

Collectivist

Pertains to cultural or social practices that prioritize the group over individual interests.