An Investor Buys a 5-Year,9% Coupon Bond for $975,holds It

question 7

Multiple Choice

An investor buys a 5-year,9% coupon bond for $975,holds it for 1 year,and then sells the bond for $985.What was the investor's rate of return?

• A) 9.00%
• B) 9.23%
• C) 9.65%
• D) 10.26%

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Definitions:

Supercell Clusters

Large-scale convective weather phenomena characterized by severe thunderstorms capable of producing tornadoes and other intense conditions.

Feature Detectors

Neurons in the brain that respond to specific attributes of a stimulus, such as lines, edges, or movements.

Cortical Areas

Regions located in the brain's cortex involved in numerous functions, including sensory perception and cognitive processes.

Subliminally

In a manner that affects someone's mind without them being fully aware of it; influencing subconscious perception.