What Is the Return on a 5 Percent Coupon Bond

question 20

Multiple Choice

What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 one year later?

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

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Definitions:

Metamorphic Rocks

Rocks that have been transformed from pre-existing rock types through heat, pressure, and/or chemically active fluids.

Granite

A hard, granular, intrusive igneous rock composed mainly of quartz, mica, and feldspar.

Isotopes

Variants of chemical elements that have the same number of protons but different numbers of neutrons in their nuclei, affecting their atomic mass but not their chemical properties.

Conglomerate

A coarse-grained sedimentary rock composed of rounded fragments or clasts of pre-existing rocks cemented together.