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

Question

Quizplus · Accepted Answer

The three sources of dollar returns from a bond investment are the semi-annual coupon payments, the interest earned on reinvesting those coupon payments, and the principal paid at maturity. The interest earned on reinvesting the last coupon and the principal is not typically considered a separate source of return.

An Investor Has Three Sources of Dollar Returns from a Bond