A Bond's Rate of Return Is Equal to Its Coupon

question 28

True/False

A bond's rate of return is equal to its coupon payment divided by the price paid for the bond.

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Definitions:

Nonaggression Pact

A nonaggression pact is an agreement between two or more countries to not engage in military action against each other for a specified period of time.

Soviet Union

A socialist state in Eurasia that existed from 1922 to 1991, characterized by a single-party system led by the Communist Party.

Grand Alliance

Historically refers to the major coalition formed of European powers against Louis XIV of France in the late 17th century or the alliance of Britain, the Soviet Union, and the United States during World War II.

Soviet Union

A former federal socialist state in Eurasia that existed from 1922 to 1991, composed of multiple republics, and was governed by the Communist Party.