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:

Job Performance

The level of effectiveness with which an individual executes their job-related tasks, responsibilities, and duties.

Job Analysis

The process of gathering, examining, and interpreting data about a job's tasks and responsibilities to determine what is required of an individual in that role.

Scientific-Management

A management theory focusing on improving economic efficiency, especially labor productivity, by scientifically studying work methods and setting performance standards.

Individual Initiative

The action of taking the first step or move without prompt from others, showcasing autonomy and proactivity.