A Three-Year 9% Bond Is Trading at Par of $5,000

question 36

Multiple Choice

A three-year 9% bond is trading at par of $5,000. If you buy the bond expecting to hold it to maturity and believe you can reinvest the $225 semi-annual coupon payments at a 3.5% semi-annual rate through maturity. The total return on this investment is _____ annually.

• A) 3.50%
• B) 4.50%
• C) 7.00%
• D) 8.80%
• E) 9.00%

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Definitions:

Spirituality

The aspect of human experience that involves the search for or connection with something greater than oneself, which can encompass religious belief, personal growth, or a sense of peace.

Social Interest

A concept in psychology that refers to an individual's attitude towards being a part of and contributing positively to the larger community or society.

Parenting Style

The manner in which parents raise their children, including disciplinary strategies, warmth, and communication patterns.

Family Constellation

A psychotherapeutic method that explores the relationships and emotional bonds within a family or group, aiming to uncover and resolve issues rooted in family dynamics.