You Buy an 8 Year $1000 Par Value Bond Today

question 59

Multiple Choice

You buy an 8 year $1000 par value bond today that has a 6% yield and a 6% annual payment coupon.In one year promised yields have risen to 7%.Your one year holding period return was ___.

• A) 0.61%
• B) -5.39%
• C) 1.28%
• D) -3.25%

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Definitions:

Behaviors Originate

The inception or root causes of patterns of actions or reactions in individuals, often explored in psychology to understand human and animal behavior.

Genetics

The branch of biology concerned with the study of genes, genetic variation, and heredity in living organisms.

Controlled

A state or condition where something is regulated or directed, often to maintain a desired level of quality, efficiency, or outcome.

Biological Approach

The biological approach in psychology focuses on understanding human behavior and mental processes through the biological basis of individuals, such as genetics, brain structures, and neurotransmitter activity.