Rhea Anderson Purchased a Corporate Bond at $500 a Year

question 79

Short Answer

Rhea Anderson purchased a corporate bond at $500 a year ago, on which she received a coupon payment of $35. The price of the bond has now gone up to $525.
A) Compute Rhea's capital gains yield.
B) Compute Rhea's income yield.
C) Compute Rhea's investment return.

• A) Compute Rhea's capital gains yield.
• B) Compute Rhea's income yield.
• C) Compute Rhea's investment return.

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Definitions:

Terminal Values

Values that influence the goals to be achieved or the end states of existence.

Instrumental Values

Values that shape the acceptable behaviors that can be used to achieve some goal or end state.

Work Values

The beliefs and principles about work that are important to an individual, influencing their job choices and satisfaction.

Cultural Values

The core principles and ideals upon which an entire community exists and functions.