A Bond with an Annual Coupon Rate of 12 Percent

question 87

Multiple Choice

A bond with an annual coupon rate of 12 percent and face value of $1,000.00 was purchased for $990.00 and sold two years later for $1,050.00.What was the holding period return?

• A) 15.1%
• B) 18.2%
• C) 30.3%
• D) 28.5%
• E) 30.0%

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