An Investor Purchased an NCD a Year Ago in the Secondary

question 27

Multiple Choice

An investor purchased an NCD a year ago in the secondary market for $980,000. He redeems it today and receives $1,000,000. He also receives interest of $30,000. The investor's annualized yield on this investment is

• A)2.0 percent.
• B)5.10 percent.
• C)5.00 percent.
• D)2.04 percent.

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Definitions:

PO

An abbreviation used in medical prescriptions, standing for "per os," which means "by mouth" in Latin, indicating oral administration.

AM

A term indicating the time period from midnight to noon or used as a prefix in frequency modulation (Amplitude Modulation).

Prochlorperazine

An antiemetic and antipsychotic medication used to control severe nausea and vomiting and to treat schizophrenia.

Nausea

A feeling of sickness with an inclination to vomit, which can be a symptom of numerous conditions or a side effect of medication.