What Is the Rate of Return for an Investor Who

question 80

Multiple Choice

What is the rate of return for an investor who pays $1,054.47 for a 3-year bond with coupon 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:

Need Theories

Psychological theories that focus on the inherent human needs driving behavior and motivation.

Process Theories

Theories that focus on the psychological and behavioral processes that motivate individuals to act in certain ways.

Perceptual Biases

Psychological tendencies that cause the misinterpretation or distortion of a sensory stimulus or judgment.

Selective Perception

The process by which individuals perceive what they want in media messages while ignoring opposing viewpoints.