A Bond with No Expiration Date Has a Face Value

question 210

Multiple Choice

A bond with no expiration date has a face value of $10,000 and pays a fixed 10 percent interest.If the market price of the bond rises to $11,000, the annual yield approximately equals

• A)11 percent.
• B)10 percent.
• C)9 percent.
• D)8 percent.

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Definitions:

Copyrights

Legal rights granted by the government to creators for the protection of their original works for a certain period.

Coal Mines

Locations where coal is extracted from the earth, often involving extensive mining operations.

Rental Expenses

Rental expenses are costs incurred in the operation, maintenance, and management of rental property and can include repairs, property taxes, and mortgage interest, often deductible for tax purposes.

Schedule E

A form used by taxpayers in the United States to report income and losses from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.