Rita Jacob Purchased a Corporate Bond at $650 a Year

question 44

Short Answer

Rita Jacob purchased a corporate bond at $650 a year ago. The price of the bond has now increased to $665.
A) What is Rita's capital gains yield from this investment?
B) If her investment return is 7%, what coupon payment must she have received?

• A) What is Rita's capital gains yield from this investment?
• B) If her investment return is 7%, what coupon payment must she have received?

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Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Direct Competition

A situation in which products that perform the same function compete against one another. Also called category competition or brand competition.

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Direct competitors offering similar products or services within the same market or industry, targeting the same customer base.

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