The Return on a 5 Percent Coupon Bond That Initially

question 62

Multiple Choice

The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $950 next year is

• A)-10 percent.
• B)-5 percent.
• C)0 percent.
• D)5 percent.

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Definitions:

Lease

A contractual agreement where one party (the lessor) grants another party (the lessee) the right to use an asset for a specified period in exchange for payment.

Electronic Commerce

The buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.

Ucc Articles

UCC Articles refer to the sections of the Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Unconscionability

A legal doctrine that describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining power, that they are contrary to good conscience.