An Investor Has Three Sources of Dollar Returns from a Bond

question 7

Multiple Choice

An investor has three sources of dollar returns from a bond investment. Which of the following is NOT included among the three sources?

• A) The semi-annual coupon payments.
• B) The interest earned on reinvesting the coupon payments.
• C) The principal paid at maturity.
• D) The interest earned on reinvesting the last coupon and the principal.

Assess the effect of legislative acts on U.S. domestic policy and financial regulation.

Understand the concept of social facilitation and its impact on performance.

Identify and explain social loafing and the factors that contribute to it.

Describe the effect of group presence on individual behavior including performance enhancement and inhibition.

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Definitions:

Original Issue Discount

The difference between the face value of a bond and its offering price when the bond is issued at a lower price.

Semiannual Coupon

A fixed income security feature that represents the payment of interest to bondholders twice a year.

Par Value

The nominal or face value assigned to a security by the issuer, which may differ from its market value.

Semiannual Coupon

A bond or other fixed-income security that pays interest to the holder every six months.