What Is the Return on a 5 Percent Coupon Bond

question 46

Multiple Choice

What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $1,200 next year?

• A)5 percent
• B)10 percent
• C)-5 percent
• D)25 percent

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Definitions:

Direct Costs

Expenses that are directly attributed to the production of goods or services, such as materials and labor.

Territory

An area or region designated for specific business activities or responsibilities, often defined for sales purposes.

Corporate Customers

Business entities or organizations that purchase goods or services for their operational needs, as opposed to individual consumers.

Segment

A group of people or organizations sharing one or more characteristics that cause them to have similar product needs.