What Is the Rate of Return for an Investor Who

question 69

Multiple Choice

What is the rate of return for an investor who pays $1,054.47 for a 3-year bond with a coupon rate of 6.5% and sells the bond 1 year later for $1,037.19?

• A)4.53%
• B)5.33%
• C)5.16%
• D)4.92%

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Definitions:

Duty

A moral or legal obligation; the responsibility to fulfill tasks, obligations, or roles as required by the law or social norms.

Conduct

Behavior or actions of an individual or organization, especially in relation to legal, ethical, or professional standards.

Common Law

A body of unwritten laws based on legal precedents established by the courts.

Unborn Child

A term referring to a fetus or embryo that has not yet been born, often used in legal, medical, and ethical discussions.