What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19?
A. 5.00%
B. 5.33%
C. 6.46%
D. 7.00%
Answer:A
What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19?
A. 5.00% B. 5.33% C. 6.46% D. 7.00%