A "Buy-And-Hold" Investor Purchases a Fixed-Rate Bond at a Discount

question 7

Multiple Choice

a "buy-and-hold" investor purchases a fixed-rate bond at a discount and holds the securi- ty until it matures. Which of the following sources of return is least likely to contribute to The investor's total return over the investment horizon, assuming all payments are made as Scheduled?

• A) Capital gain
• B) Principal payment
• C) reinvestment of coupon payments

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