What Is the Return on a 5 Percent Coupon Bond

question 43

Multiple Choice

What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $1,200 one year later?

• A) 5 percent
• B) 10 percent
• C) -5 percent
• D) 25 percent
• E) None of the above

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Definitions:

Marginal Revenue

The supplementary income generated through the sale of an additional unit of a good or service.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

Job Satisfaction

The degree to which an individual feels positively or negatively about a job.

Organisational Loyalty

The level of commitment an individual has towards their organization, often reflecting in their willingness to stay with and support the organization.