What Is the Expected Rate of Return on a Bond

question 27

Multiple Choice

What is the expected rate of return on a bond that matures in seven years, has a par value of $1,000, a coupon rate of 14%, and is currently selling for $911? Assume annual coupon payments.

• A) 7.81%
• B) 15.36%
• C) 15.61%
• D) 16.22%

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Definitions:

Implicit Measures

Assessment tools used to evaluate attitudes, feelings, or beliefs that individuals may be unwilling or unable to report directly.

Explicit Measures

Direct and straightforward techniques to assess attitudes, opinions, or behaviors, often through self-report.

Peripheral Route

A route of persuasion that involves more superficial cues, such as the attractiveness of the speaker, rather than the quality of the arguments.

Central Route

In the context of persuasion, it refers to the process of attitude change that occurs through careful and thoughtful consideration of the true merits of the information presented.