You Purchased a Bond for $1,000

question 2

Multiple Choice

You purchased a bond for $1,000. At the end of a year, the bond paid interest of $90. You sold the bond for $950 after receiving the interest payment.
-Refer to the information above. What was your coupon yield ? Round your answer to the nearest tenth of a percent.

• A)9.5%
• B)9 basis points
• C)9.0%
• D)Both B and C are correct.

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Definitions:

Formality

The adherence to established rules or standards, typically in legal or official contexts.

Deed

A writing, sealed and delivered by the parties; an instrument conveying real property.

Primarily Liable

A legal term describing the party who bears the main responsibility in the fulfillment of an obligation or the payment of a debt.

Artisan Lien

A legal right granted to craftsmen or laborers to retain possession of a client's property until payment is received for services rendered.