A Bond That You Held to Maturity Had a Realized

question 50

Multiple Choice

A bond that you held to maturity had a realized return of 8 percent,but when you bought it,it had an expected return of 6 percent. If no default occurred,which one of the following must be true?

• A)The bond was purchased at a premium to par.
• B)The coupon rate was 8 percent.
• C)The required return was greater than 6 percent.
• D)The coupons were reinvested at a higher rate than expected.
• E)The bond must have been a zero coupon bond.

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Definitions:

Motivation

Motivation is the internal drive or external stimulus that prompts an individual to take action toward achieving a goal.

Practice Talks

Sessions or rehearsals where individuals present their work, speeches, or presentations in front of others to improve and refine their delivery.

Motivation Process

The motivation process involves the psychological mechanisms and forces that drive an individual to act or perform towards achieving certain goals.

Unsatisfied Needs

Conditions or desires that have not been fulfilled, which can motivate behavior in an effort to satisfy them.