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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Definitions:

Suppress Disagreement

The act of deliberately preventing or reducing the expression of differing opinions or conflicts.

Harmony

A pleasing combination or arrangement of different things, often referring to music, but also applicable to social and personal contexts.

Just-World Hypothesis

The cognitive bias or belief that the world is fundamentally fair, leading individuals to rationalize an otherwise inexplicable injustice as deserved by the victim.

Social Group

A collection of individuals who interact with each other and share similar characteristics and a sense of unity.