Which of the Following Equations Is Used to Compute the Percentage

question 98

Multiple Choice

Which of the following equations is used to compute the percentage rate of return on a bond?

• A)Percentage rate of return on a bond = Current yield + Coupon rate of interest
• B)Percentage rate of return on a bond = Current yield + Capital gains yield
• C)Percentage rate of return on a bond = Market return + Maturity value
• D)Percentage rate of return on a bond = Market yield + Current yield
• E)Percentage rate of return on a bond = Market yield + Capital gains yield

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Definitions:

Imposter

A person who deceives others by pretending to be someone else for personal or financial gain.

Obligor

A person or entity legally bound to provide a payment, service, or other benefit to another (the obligee) under the terms of a contract or legal agreement.

Negotiable Instrument

A formal written notice ensuring a particular sum of money will be paid, either immediately when asked or at a certain date, with the document specifying who is to pay.

Promissory Note

A written, legally binding document in which one party promises to pay another a specific sum of money, either on demand or at a defined future date.