You Purchased a 6% Annual Coupon Bond at Par and Sold

question 91

Multiple Choice

You purchased a 6% annual coupon bond at par and sold it one year later for $1,015.16. What was your rate of return on this investment if the face value at maturity was $1,000?

• A) 4.48%
• B) 6.15%
• C) 7.52%
• D)6.07%

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Definitions:

Foreign Exchange Market

The global marketplace for buying and selling national currencies, determining exchange rates.

Country X's Currency

The official medium of exchange issued and controlled by a particular country, identified uniquely to that country.

Stocks and Bonds

Financial instruments that represent ownership in a company or a debt owed by an entity, respectively.

Flexible Exchange Market

A foreign exchange system where currency values fluctuate based on market forces without direct government intervention.