What Is the Rate of Return for an Investor Who

question 7

Multiple Choice

What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19?

• A)5.00%
• B)5.33%
• C)6.46%
• D)7.00% Rate of Return =
• 1054.47 - 1037.19 = 17.28
• ($70.00 - $17.28)/$1,054.47

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Definitions:

Developmental Change

The process of change or growth that occurs in organisms over time, often studied in psychology to understand how people evolve through different life stages.

Sequential Method

A research approach that combines elements of both qualitative and quantitative methods, applied in a specific sequence to enrich data collection and analysis.

Longitudinal

A duplicate key, focusing on studies or analyses conducted over an extended period to observe changes in the data or subjects being studied.

Cross-sectional

Pertaining to a research design that examines a data sample or multiple samples at one specific point in time.