The Nominal Yield of a Bond Is the

question 3

Multiple Choice

The nominal yield of a bond is the

• A) Annual coupon as a percent of the current price.
• B) Annual rate earned including the capital gain or loss.
• C) Rate earned giving consideration to coupon reinvestment.
• D) Coupon rate.
• E) Promised yield to maturity.

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Definitions:

Great Britain

An island in the North Atlantic Ocean off the northwest coast of continental Europe, comprising England, Scotland, and Wales.

Japan

An island country in East Asia, known for its rich history, cultural heritage, and significant economic and technological advancements.

Colony

A territory under the immediate political control of a state, distinct from the sovereign territory of that state.

Joint Chiefs of Staff

A body of senior uniformed leaders in the United States Department of Defense who advise the President, the Secretary of Defense, and the National Security Council on military matters.