A Bond Has a Par Value of $1,000, a Time

question 41

Multiple Choice

A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest paid annually. If the current market price is $750, what is the capital gain yield of this bond over the next year?

• A) .72%
• B) 1.85%
• C) 2.58%
• D) 3.42%

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Definitions:

Consumers' Pockets

Refers to the purchasing power and available spending money of individuals or households for goods and services.

U.S. Health Care Spending

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Deductibles And Copayments

Fixed amounts that policyholders must pay out-of-pocket before an insurer covers the remaining costs for covered services or goods.

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Government-provided insurance intended to offer basic coverage to citizens, often focusing on health, unemployment, or disability.