What Is the Expected Rate of Return on a Bond

question 96

Multiple Choice

What is the expected rate of return on a bond that pays a coupon rate of 9% paid semi-annually, has a par value of $1,000, matures in five years, and is currently selling for $1071?

• A) 7.28%
• B) 8.40%
• C) 3.64%
• D) 4.21%

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Definitions:

Aggression-Approval

Describes a situational response wherein acts of aggression are met with approval or consent, often studied in social psychology.

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.

Social Context

The environmental and cultural settings that influence an individual's perceptions, behaviors, and interactions with others.

Objectively Linked

A term describing elements or phenomena that are connected in a measurable or observable way, independent of personal feelings or opinions.