Steve Purchased a Bond for $975

question 37

Multiple Choice

Steve purchased a bond for $975.00.Ninety days later he received interest income of $40.00,and then immediately sold the bond for $990.00.What is the annualized rate of return Steve earned on this investment?

• A) 5.6%
• B) 22.6%
• C) 16.4%
• D) 10.1%
• E) 12.3%

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