Monica buys a bond for $750 and then sells it later for $950. Monica's gain is which of the following?

Question

Quizplus · Accepted Answer

Monica's gain is a capital gain because she made a profit on the sale of a capital asset (the bond). A net gain would be any gain that is left over after subtracting the cost of the investment from the sale price. A Fisher gain refers to a nominal gain that is equal to the real rate of return plus the inflation rate. An inflation tax gain is not a recognized term in finance/economics.

Monica Buys a Bond for $750 and Then Sells It