When I Purchase a 10 Percent Coupon Bond,I Calculate a Yield

question 77

Multiple Choice

When I purchase a 10 percent coupon bond,I calculate a yield to maturity of 8 percent. If I hold this bond to maturity,then my return on this asset is

• A) 10 percent.
• B) 8 percent.
• C) 12 percent.
• D) there is not enough information to determine the return.

---

Definitions:

Depression

A mental health disorder marked by pervasive feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Mental Illness

A broad range of conditions that affect mood, thinking, and behavior, often requiring medical evaluation and intervention.

Psychologist

A professional who studies cognitive, emotional, and social processes and behavior by observing, interpreting, and recording how individuals relate to one another and to their environments.

Medical Doctor

A qualified practitioner of medicine; a physician.