A Bond That You Held to Maturity Had a Realized

question 50

Multiple Choice

A bond that you held to maturity had a realized return of 8 percent,but when you bought it,it had an expected return of 6 percent. If no default occurred,which one of the following must be true?

• A)The bond was purchased at a premium to par.
• B)The coupon rate was 8 percent.
• C)The required return was greater than 6 percent.
• D)The coupons were reinvested at a higher rate than expected.
• E)The bond must have been a zero coupon bond.

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Definitions:

Unstructured Problems

Problems that lack clear definition and solution paths, often requiring creative and analytical thinking to solve.

Micro-culture

A distinct cultural group operating within a larger culture, often having its own values, norms, and practices.

Macro-culture

The dominant or overarching culture of a large group or society which influences norms, values, and practices.

Cultural Conflict

A clash or struggle that arises from differences in beliefs, values, and customs between individuals or groups from different cultures.