What Is the Total Return to an Investor Who Buys

question 112

Multiple Choice

What is the total return to an investor who buys a bond for $1,100 when the bond has a 9 percent coupon rate and five years remaining until maturity, then sells the bond after one year for $1,085?

• A)6.82 percent
• B)6.91 percent
• C)7.64 percent
• D)9.00 percent

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Definitions:

Withholding Information

A form of communication control where information is deliberately kept from others who might need or want it.

Participation

The act of taking part or being involved in an activity, decision-making process, or event.

Organization Development

A field of study and practice focused on improving organizational efficiency and effectiveness through planned interventions.

Systematic

An approach characterized by methodical planning and organization, often applied to procedures and processes.