What Is the Rate of Return for an Investor Who

question 69

Multiple Choice

What is the rate of return for an investor who pays $1,054.47 for a 3-year bond with a coupon rate of 6.5% and sells the bond 1 year later for $1,037.19?

• A)4.53%
• B)5.33%
• C)5.16%
• D)4.92%

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Definitions:

Simple Sentence

Sentence with one main clause (a single subject and a single predicate).

Independent Thought

The ability to think and form judgments without undue influence from others.

Subordinate Clauses

Clauses that cannot stand alone as a sentence because they are dependent on a main clause to make sense.

Dependent Clause

A group of words that contains a subject and verb but does not express a complete thought and cannot stand alone as a sentence.