Calculate the Nominal Percent Return from an Investment of $300

question 32

Multiple Choice

Calculate the nominal percent return from an investment of $300 in a share whose price increases to $375 after a year.

• A) 75%
• B) 20%
• C) 25%
• D) 16.67%

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Definitions:

Coupon Rate

The yearly interest rate yielded by a bond, shown as a percent of its nominal value.

Price Sensitive

Characteristic of information or news that could influence the price of securities if it were made public.

Zero-Coupon Bond

A type of bond that does not pay interest during its life but is sold at a discount from its face value and redeemed at par at maturity.

Immunization Strategies

Financial strategies used to shield a bond portfolio from the effects of interest rate fluctuations by balancing the duration of assets and liabilities.