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% Rate of Return =
1054.47 - 1037.19 = 17.28
($70.00 - $17.28) /$1,054.47
Correct Answer:
Verified
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