Which of the Following Is Correct When a Bond Investor's

question 67

Multiple Choice

Which of the following is correct when a bond investor's rate of return for a particular period equals the bond's coupon rate?

• A) The bond increased in price during the period.
• B) The bond decreased in price during the period.
• C) The coupon payment increased during the period.
• D) The bond price remained unchanged during the period.

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Definitions:

Controversial Practice

Refers to a method or procedure that generates public disagreement or debate due to differing opinions on its ethics, effectiveness, or impact.

Trade Deficit

A nation's negative balance of trade, which exists when that country imports more products than it exports.