An Investor Buys a 10-Year,7% Coupon Bond for $1,050,holds It

question 102

Multiple Choice

An investor buys a 10-year,7% coupon bond for $1,050,holds it for 1 year,and then sells it for $1,040.What was the investor's rate of return?

• A) 5.71%
• B) 6.00%
• C) 6.67%
• D) 7.00%

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Definitions:

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume, such as materials and labor.

Break-Even Analysis

A calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, helping businesses to identify profitability thresholds.

PERT

An acronym for Project Evaluation and Review Technique, a project management tool used to plan, schedule, and control large projects.

Performance Milestone

Specific goals or targets reached in the progression of a project or performance of an individual or team, marking significant achievements or stages of development.