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An Investor Buys a 5-Year $1,000, 9% Coupon Bond for $975

question 72

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An investor buys a 5-year $1,000, 9% coupon bond for $975, holds it for 1 year, and then sells the bond for $985.What was the investor's rate of return?


Definitions:

Inventory Cost

The total cost associated with holding and managing inventory, including storage, insurance, and obsolescence.

Building

A structure with a roof and walls, such as a house or factory, used for living, working, storage, or other purposes.

Scarce Resources

Resources that are limited in availability and cannot satisfy all wants and needs due to their limited supply.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.

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